The European Union and New Zealand on Sunday struck a free trade agreement that Brussels says could boost trade by 30% within a decade.
The agreement was reached in June 2022 after four years of difficult negotiations, and European Commission President Ursula von der Leyen described it as “ambitious, and very balanced”.
“New Zealand is a major partner for us in the Indo-Pacific region, and the free trade agreement will bring us closer to each other,” she said from Brussels, according to Agence France-Presse.
New Zealand Prime Minister Chris Hepkins said the agreement “will generate fundamental new economic opportunities and is very beneficial for both parties”.
The European Union is New Zealand’s third largest trading partner, from which it imports wine, fruit and meat.
The bilateral trade volume was close to nine billion euros ($9.9 billion) last year.
Brussels believes that the European Union’s exports to the South Pacific country can be increased by 4.5 billion euros annually, and the bloc’s investment in New Zealand can gradually increase by up to 80%.
The agreement includes a section on sustainable development, the first of its kind in an EU trade agreement.
Ursula von der Leyen noted that “for the first time in a trade agreement, we have included commitments to the Paris climate agreement” which aims to limit climate warming to less than 2 degrees Celsius.
“Through unprecedented social and climate commitments, it is driving equitable and green growth while strengthening Europe’s economic security,” said the European Commission President.
And the French Minister in charge of Foreign Trade, Olivier Pechet, considered that the text that “includes the Paris Agreement (on climate) as an essential element” is a reference for future trade agreements.
For the agreement to enter into force, it must be approved by the European and New Zealand parliaments.
