EU and New Zealand Free Trade Agreement Comes Into Effect

On May 1st, the trade agreement between the European Union and New Zealand entered into effect. Negotiations on the treaty took place over four years in 12 rounds and were concluded on 30th June 2022. Businesses from both NZ and Europe are expected to benefit from an improved trading environment, tariff reduction in a number of areas and a removal of many potential barriers to entry.

The agreement is expected to boost trade and investment between New Zealand and EU member states. Bilateral trade amounts to €11.5bn (NZD$20.4bn) annually and ratification of the agreement has the potential to increase trade by a further 30%. Investment links are likely to also increase with the European Commission estimating that EU investment inflows to New Zealand could increase by over 80%.

The Agreement has brought all remaining tariffs to 0% from its first day of implementation meaning consumers of machinery, chemicals, clothes, motor vehicles and pharmaceutical products may all see lower costs for many imported goods. Food and beverage trade is expected to increase too with tariffs on pork, wine and chocolate for example being eliminated.

A number of non-tariff barriers to trade have also been addressed under the treaty. Businesses will be able to invest, provide services and tender for public contracts on an equal footing. SMEs will benefit from reduced compliance costs, improved efficiencies, and a stable regulatory environment in a range of sectors. Ambitious rules on the use of e-contracts, e-invoices and paperless trading will make it easier for SMEs, in particular, to operate.

The agreement has the potential to be a boon to the already strong trading links that exist between Ireland and New Zealand and both countries are keen to showcase the opportunities for businesses and consumers as a result. In May the European Union Embassy in New Zealand hosted an event in Auckland to celebrate the entry into force of the EU-New Zealand Free Trade Agreement. In attendance were New Zealand members of parliament, members of the diplomatic corps from EU member states and New Zealand including Ambassador of Ireland to New Zealand Jane Connolly, representatives from European national trade associations, NZTE and European and Kiwi companies.

The completion of the EU NZ FTA is a significant moment in the history of the Ireland and Kiwi trade relationship with clear benefits for businesses and consumers in both markets. Enterprise Ireland looks forward to working with Irish businesses as well as our counterparts in New Zealand to further develop the strong and mutually beneficial trade relationship that exists between our two countries.

If you would like anymore information, please contact Niall Casey – [email protected]