On May 1, 2024, a new Free Trade Agreement (FTA) between the European Union and New Zealand came into effect.
According to the EU, the new agreement will offer new export opportunities for businesses, farmers, and producers in the EU and New Zealand. It significantly reduced tariffs and compliance requirements and procedures.
For EU farmers, the FTA will eliminate tariffs on a large selection of products, including wine, chocolate, and biscuits, while also protecting key agricultural products like beef and dairy.
In New Zealand, the FTA will remove tariffs on 91% of the country's exports to the EU, a figure that will rise to 97% in seven years. Beef and dairy exports will still face tariffs but benefit from increased quota volumes and reduced in-quota tariffs.
EU businesses will enjoy tariff-free exports to New Zealand and greater openness in key sectors such as financial services, telecommunications, maritime transport, and delivery services.
Furthermore, EU investors will experience a so-called “non-discriminatory” treatment in New Zealand, and EU companies will have improved access to New Zealand government procurement contracts for goods and services.
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Another key aspect of the FTA is the agreement surrounding ‘geographical indications’ (GIs) which are legally protected names of products originating from specific regions such as Champagne.
From now on, the EU and New Zealand will protect a list of each other’s GIs, meaning that New Zealand producers for instance, will be required to phase out terms like ‘feta’ or ‘port’ in products over the coming years.
As a result of the new FTA, EU exports are estimated to increase by 30% over the next decade, growing by €4.5 billion annually. Additionally, EU investments in New Zealand are expected to increase by more than 80%.