NZ-EU Free Trade Agreement: McClay, who was there for the kick-off in 2017, announces progress on ratification
The one new media statement posted on the government’s official website gives us a progress report on moves towards ratifying the New Zealand-European Union Free Trade Agreement.
The First Reading of legislation to bring the agreement into force was held in Parliament yesterday,
The news was announced by Trade Minister Todd McClay, who happened to be our Trade Minister back in January 2017 when – while enthusing about the benefits generated by the New Zealand-Korea free trade agreement – he said he had packed his bags to accompany Prime Minister Bill English’s delegation to Brussels next day.
He looked forward to discussing further trade opportunities with the European Union with his Ministerial counterparts.
In March that year New Zealand and the European Union agreed the broad scope of negotiations. (NZ EU FTA Scoping Summary and Q&A May 2017).
But much of the heavy lifting on this agreement was done during the term of the Ardern government.
Twelve formal rounds of negotiations were held between the launch of negotiations in July 2018 and substantively concluding the agreement in June 2022.
In his statement yesterday, McClay said the agreement will come into force at an agreed date after New Zealand has passed the implementing legislation and notified the EU.
He listed these benefits from the deal:
“Until now, many New Zealand products have been effectively locked out of the EU market as a consequence of high tariffs and restrictive quotas. The FTA will finally level the playing field for Kiwi businesses in the EU market. It will unlock new opportunities to grow our exports and fast implementation will contribute to achieving the Government’s goal of doubling the value of exports over the next ten years.”
The Government aims to finish its part of the ratifying procedure through Parliament by May.
Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton
The news was announced by Trade Minister Todd McClay, who happened to be our Trade Minister back in January 2017 when – while enthusing about the benefits generated by the New Zealand-Korea free trade agreement – he said he had packed his bags to accompany Prime Minister Bill English’s delegation to Brussels next day.
He looked forward to discussing further trade opportunities with the European Union with his Ministerial counterparts.
In March that year New Zealand and the European Union agreed the broad scope of negotiations. (NZ EU FTA Scoping Summary and Q&A May 2017).
But much of the heavy lifting on this agreement was done during the term of the Ardern government.
Twelve formal rounds of negotiations were held between the launch of negotiations in July 2018 and substantively concluding the agreement in June 2022.
In his statement yesterday, McClay said the agreement will come into force at an agreed date after New Zealand has passed the implementing legislation and notified the EU.
He listed these benefits from the deal:
- An annual boost to GDP of up to $1.4 billion, and increase of exports to the EU by up to $1.8 billion per year by 2035.
- Duties removed on 91% of New Zealand’s goods exports to the EU from entry into force, rising to 97% after seven years.
- Tariff savings of $100 million per year on New Zealand exports to the EU from day one – the highest immediate tariff savings of any New Zealand FTA. This includes the removal of tariffs on products like kiwifruit, MÄnuka honey, fish and seafood, onions, wine and industrial products.
- Additional quotas for meat and dairy.
“Until now, many New Zealand products have been effectively locked out of the EU market as a consequence of high tariffs and restrictive quotas. The FTA will finally level the playing field for Kiwi businesses in the EU market. It will unlock new opportunities to grow our exports and fast implementation will contribute to achieving the Government’s goal of doubling the value of exports over the next ten years.”
The Government aims to finish its part of the ratifying procedure through Parliament by May.
Latest from the Beehive
31 JANUARY 2024
New Zealand has moved closer to ratifying the New Zealand – European Union Free Trade Agreement (FTA), with the First Reading of legislation to bring the Agreement into force being held in Parliament today.
Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton
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