EU-New Zealand trade agreement in force

Parliamentary State Secretary at the Federal Ministry for Economic Affairs and Climate Action Dr Franziska Brantner said: “New Zealand is one of our strategically most important and closest partners in the Indo-Pacific region. The agreement brings us even closer together. We are strengthening the possibilities for diversification for our companies and opening up new market opportunities for them. In addition, this is the first trade agreement to implement the EU’s new approach for green and fair growth and include legally enforceable sustainability provisions.”

The European Commission assumes that the agreement will result in a rise in trade between the EU and New Zealand of up to 30%. It expects European companies to save around €140 million annually due to the abolition of tariffs formerly imposed by New Zealand. As regards European investment in New Zealand, the Commission forecasts a potential increase of more than 80%.

The agreement comprises binding and ambitious, enforceable sustainability obligations. This also means that account must be taken of the Paris Climate Agreement and the core principles of the International Labour Organization. Furthermore, the agreement includes a chapter on sustainable food systems and it has a dedicated Article on trade and gender equality and a dedicated provision on trade and fossil fuel subsidies reform. The entry into force of the agreement also facilitates trade in environmental goods and services.

You can find further information about the trade agreement here and information about foreign trade between Germany and New Zealand here.