Status: 06/30/2022 5:48 p.m
Fewer tariffs, more climate protection: The negotiations on a free trade agreement between the EU and New Zealand have been successfully concluded. This should increase bilateral trade by 30 percent.
After four years of negotiations, the European Union and New Zealand have agreed on a joint free trade agreement. EU Commission chief Ursula von der Leyen spoke of a historic moment after a meeting with New Zealand Prime Minister Jacinda Ardern. 97 percent of the goods that New Zealand exports to the EU are exempt from tariffs under the agreement, said Ardern. Talks about it have been going on since 2018.
Before the free trade agreement can come into force, the 27 EU countries and the EU Parliament must first agree. The aim of the agreement is to increase bilateral trade by 30 percent. The EU is currently New Zealand’s third largest trading partner. In 2021, trade included goods and services with a total value of almost 7.8 billion euros.
Promote sustainability goals
The agreement aims to abolish customs duties on many products, but also provides for penalties if one of the partners violates environmental regulations or minimum labor standards. It will help promote sustainability goals, said EU Trade Commissioner Valdis Dombrovskis. Violations of climate protection efforts could be sanctioned.
Other EU politicians also welcomed the agreement. “Trade in goods could increase by up to 47 percent. With the focus on sustainable products, the agreement is progress for responsible trade,” said the FDP European politician Svenja Hahn.
The SPD politician Bernd Lange praised the EU and New Zealand’s claim to pursue sustainability as a goal and condition of their cooperation.
Alternatives to China and Russia
Germany is currently looking for alternatives to trade with Russia and China and is also hoping for deals with India and Canada. For Friday, the federal cabinet plans to initiate the ratification of the CETA free trade agreement with Canada. The federal government hopes that CETA will soon come into force in the EU.