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EU-New Zealand Free Trade Agreement has officially come into effect

May 10, 2024 New Zealand

The EU-New Zealand Free Trade Agreement, which took effect on the 1st of May, is expected to increase trade between the two regions by 30%, creating new opportunities for businesses and consumers

The recent implementation of the Free Trade Agreement (FTA) between the European Union (EU) and New Zealand is expected to significantly boost bilateral trade flows and strengthen the EU’s ties with “a like-minded ally in the economically dynamic Indo-Pacific region”.

An impact assessment suggests a potential 30% increase in trade volume, coupled with cost savings of 140 million euros per year for businesses due to the elimination of tariffs. This includes goods like cars, machinery, chemicals, pharmaceuticals, textiles, clothing, and footwear. In addition, the agreement is expected to stimulate a significant increase in EU investment in New Zealand, potentially over 80%.

Beyond trade facilitation, the EU-NZ FTA offers significant advantages. It streamlines compliance for businesses, strengthens intellectual property protections, and fosters small business exports through a dedicated chapter. Notably, the agreement sets a new standard for sustainability by incorporating commitments to the Paris Climate Agreement and upholding core labour rights.

Image Credits: bloomberg.com

European Union New Zealand Economy International Trade Trade agreements