EU/New Zealand: free trade agreement gets green light from Council
On 27 June, the Council of the European Union approved the trade agreement between Brussels and Wellington.
Last February, the European Commission proposed to the Council that it authorise the signing of the EU-New Zealand Free Trade Agreement (FTA) (cf.EU/New Zealand: signing a new trade agreement). The Council officially gave its green light on 27 June 2023.
After four years of negotiations, the FTA, concluded on 30 June 2022, aims to liberalize and facilitate trade and investment and strengthen economic relations between the two parties. The EU is New Zealand's third largest trading partner, after China and Australia. Their bilateral trade in goods, increasing in recent years, amounted in 2022 to almost EUR 9.1 billion. Thanks to this pact, they could still increase by 30%. Brussels estimates an increase of EUR 4.5 billion for its exports and asavings of EUR 140 million per year in customs duties for European companies, from the first year of application.
The text provides, inter alia, for the opening by the European Union of tariff import quotas to:
- 38 000 tonnes ofsheepmeatwith zero right,
- 10 000 tonnes ofbeef and vealwith a duty of 7,5 %,
- 15 000 tonnes ofmilk powderswith a 20 % duty,
- 15 000 tonnes ofbuttera duty gradually reduced to 5 %,
- 25 000 tonnes ofcheesewith zero right,
- 4 000 tonnesethanolat zero right.
While Brussels welcomes this agreement, in particular thanks to the expected additional 30% of trade, the agricultural sector remains concerned about the arrival on the Community market of thousands of tonnes of additional New Zealand sheepmeat, probably at prices which should defy competition.
Next step: the European Parliament must, in turn, give its approval to the conclusion of the agreement. New Zealand will ratify the treaty. The two partners will then have to signify the end of their internal procedures respectively. The FTA will then enter into force either on the first day of the second month following the date of such service or on another mutually agreed date.
Source(s): European Council
Editor(s): C. Bedouin