The European Union (EU) countries approved the signing of a Free Trade Agreement (FTA) to strengthen economic relations with New Zealand.
The European Council announced that the member states have approved the decision to sign a trade agreement between the EU and New Zealand.
In the statement, it was noted that the agreement will liberalize mutual trade and investments, and that this will encourage closer economic relations.
Pointing out that the agreement will offer significant economic opportunities for companies and consumers, it was stated that when the agreement comes into effect, bilateral trade is expected to increase by 30 percent and the annual export potential of the EU will increase by 4.5 billion euros.
In the statement, it was noted that the EU’s investment in New Zealand has the potential to increase by 80 percent, and that EU companies will save approximately 140 million euros in customs duties per year.
It was stated in the statement that all tariffs on important products exported from the EU to New Zealand will be lifted, and that the country’s service sector such as finance, telecommunications, maritime transport and delivery will also be opened to EU companies.
In the statement, it was stated that the access of EU companies to public tenders in New Zealand will increase, and the terms and procedures of products will be reduced for easier trade.
Underlining that the EU fully implements its new approach to sustainable development in the EU-New Zealand trade agreement, it was emphasized that the agreement includes provisions on sustainable food systems, gender equality and fossil fuel subsidies.
Mutual trade between the EU and New Zealand was around 9 billion euros last year.
EU-New Zealand trade agreement negotiations were concluded last year, and the EU Commission requested authorization from the European Council to sign the agreement.
After this stage, the approval of the European Parliament (EP) is required for the agreement to be officially signed.