NZ signs trade deal with Costa Rica, Iceland and Switzerland

Trade and Agriculture Minister, Todd McClay, has signed a pioneering trade agreement at a ceremony during APEC in Peru that he says prioritises New Zealand’s sustainable exports.

The Miniser says the Agreement on Trade and Sustainability (ACCTS), between Costa Rica, Iceland, and Switzerland was concluded in July of this year and opens up significant economic opportunities for New Zealand businesses by eliminating tariffs on key sustainable goods and services.

“This agreement removes tariffs on key exports including 45 wood and wool products — two sectors that are vital to achieving our goal of doubling New Zealand’s exports by value in 10 years,” Mr McClay says. 

He said the new preferential access enhances New Zealand’s competitive standing in global markets and backs Kiwi exporters to succeed overseas.   

“It will also reduce costs for consumers, removing tariffs on hundreds of other products, including insulation materials, recycled paper, and energy-saving products such as LED lamps and rechargeable batteries.”

“ACCTS is about opening new markets, growing domestic jobs, and adding value across the economy. As more countries join, the economic benefits will only grow.”

The agreement also introduces the first international guidelines on eco-labelling, ensuring they do not become Non-Tariff Barriers (NTBs), and further supports New Zealand’s renewable energy sector by establishing rules to prevent fossil fuel subsidies.

“Growing New Zealand’s trade relationships is part of our plan to grow the economy, lift incomes for Kiwis, and create jobs,” Mr McClay said.

For further details on ACCTS, visit the Ministry of Foreign Affairs and Trade website: https://www.mfat.govt.nz/en/trade/free-trade-agreements/trade-and-climate/agreement-on-climate-change-trade-and-sustainability-accts-negotiations/.