To enter into force, the agreement will still have to receive the approval of the European Parliament and be ratified by New Zealand.
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The European Union and New Zealand signed a free trade agreement on Sunday, July 9, which should, according to Brussels, lead to a 30% increase in their bilateral trade within a decade. The agreement must still receive the approval of the European Parliament and be ratified by New Zealand to enter into force.
Referring to this agreement concluded in June 2022 after four years of tough negotiations, the President of the European Commission Ursula von der Leyen welcomed a text “ambitious” And “very balanced”. “New Zealand is a key partner for us in the Indo-Pacific region, and this free trade agreement will bring us even closer”she added in a statement from Brussels.
Growth in investments
For his part, New Zealand Prime Minister Chris Hipkins praised a text that represents “huge benefits” for both partners. The EU is New Zealand’s third largest trading partner, exporting wine, fruit and meat to Europe, among others.
Bilateral trade in goods between the two areas represented just over 9 billion euros in 2022. According to Brussels, EU exports to the Pacific archipelago could increase by an amount of up to 4 .5 billion euros per year. EU investment in New Zealand could grow by up to 80%. The text also contains a chapter dedicated to “sustainable development”, unprecedented in a European trade agreement.