New Zealand and EU finalise free trade agreement


Following four years of negotiations, the EU and New Zealand finalised a free trade agreement (FTA) that is expected to save more than EUR 140 million per annum to businesses in the form of export duties. The FTA also reduces compliance requirements, which should result in a faster exchange of goods.

The FTA is also expected to facilitate exchange of services and provide new opportunities for businesses in every sector.

An additional advantage for opening up these markets is to provide non-discriminatory treatment for both EU and New Zealand investors.

The FTA will facilitate digital trade, thereby providing predictability and facilitating data protection and privacy. IP rights will be secured through the inclusion of comprehensive rules that encourage innovation and growth.

Different from many multinational agreements, the FTA also includes Trade and Sustainable Development (TSD) guarantees that lay down penalties for breach of trade rules. The TSD implements International Labour Organisation principles and Multilateral Environmental Agreements and pays special attention to climate change by ensuring adherence to the Paris Agreement.

The FTA will enter into force upon approval by the Council and the Parliament of the EU.

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