• Analysis and Studies
• EU - New Zealand Trade Agreement

The European Union and New Zealand share strong historical and cultural connections and hold similar perspectives on various global challenges, including their opposition to protectionism.

In May 2018, the Council of the EU granted authorization to the European Commission to commence trade negotiations with New Zealand and adopted guidelines for the negotiations.

After four years of negotiations and 12 rounds of talks, the EU and New Zealand successfully concluded an ambitious free trade agreement (FTA) in June 2022. The FTA aims to eliminate all tariffs on EU goods, provide support for EU farmers, and establish provisions for the protection of workers and the environment through comprehensive and enforceable measures on sustainable development.

To support the FTA negotiations, a Sustainability Impact Assessment (SIA) was conducted, which indicated that the agreement would bring about positive macroeconomic effects for both the EU and New Zealand.

The European Union and New Zealand successfully concluded extensive trade negotiations on June 30, 2022. Trade in goods between the two partners has been steadily increasing and reached nearly €9.1 billion in 2022. The EU stands as New Zealand's third-largest trade partner.

The impact assessment on the Free Trade Agreement (FTA) predicts a 30% boost in trade between New Zealand and the EU, with the elimination of tariffs alone resulting in annual savings of €140 million for businesses. Furthermore, EU investment in New Zealand could increase by more than 80%.

Once implemented, the agreement will create significant economic opportunities for companies, farmers, and consumers. It also emphasizes compliance with the Paris Climate Agreement and core labor rights, enforceable through trade sanctions if necessary. Additionally, the FTA strengthens the EU's alliance with a like-minded partner in the economically dynamic Indo-Pacific region.

Negotiations began in June 2018 and underwent 12 rounds of discussions. After the conclusion of negotiations, the draft texts underwent legal revision and translation. The agreement was signed on July 9, 2023, following authorization by the Council. Once the European Parliament grants its consent and New Zealand ratifies the agreement, it can enter into force.

New Zealand's exports to the EU are largely dominated by agricultural products, while the EU's exports to New Zealand are focused on manufactured goods. Trade in goods of the EU exports between the two accounted for a total value of 6.3 billion of euros, which was up from 5.5 Billion of euros in 2021 and 4.2 in 2020. While in terms of EU imports of goods from New Zealand amounted at 2.8 billion of euros in 2022, 2.3 in 2021 and 2020. On the other hand, considering Trade in Services from the EU imports the figures are slightly different; indeed, they amount at 1.2 billion of euros (2019), 1.1 (2020), and 0.8 (2021). EU exports of services to New Zealand are, instead, completely different from the imports. Indeed, they reached 2.7 (2019), 2.5 (2020), and 2.7 (2021).