Wednesday, 01 May 2024 15:55

NZ-EU FTA enters into force

Written by  Staff Reporters
Trade Minister Todd McClay. Trade Minister Todd McClay.

Trade Minister Todd McClay says Kiwi exporters will be $100 million better off today as the NZ-EU Free Trade Agreement (FTA) comes into force.

McClay says that New Zealand’s prosperity is dependent on international trade as it makes up 60% of the country’s total economic activity.

“It is only through a strong economy that we can reduce the cost of living and pay for quality public services like schools and hospitals,” he says.

“This is a significant achievement for New Zealand and follows more than 15 years of lobbying, persuading and negotiating.”

The agreement secures tariff reductions for kiwifruit, wine, seafood, and several other products and includes commitments on services and investment, ensuring that Kiwis can compete fairly in the EU market in these sectors.

To grow awareness of the opportunities the FTA presents, the Government will undertake an information campaign to help Kiwi businesses grow trade with the EU.

“Trade supports one in four kiwi jobs, and we rely on strong relationships with international partners to increase productivity, grow export opportunity, and boost the resilience of our economy,” McClay says.

The EU is New Zealand’s fourth-largest trade partner, with two-way goods and services trade worth $20.2 billion in 2022, accounting for 10.3% of New Zealand’s total trade in goods and services.

“The EU is an important and trusted partner for New Zealand. We look forward to deepening both economic and people-to-people connections further,” McClay says.

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