Monday, April 22, 2024

EU tariff savings ripe for the picking says Trade Minister

Minister for Trade and Agriculture, Todd McClay says the Government is moving quickly to realise an additional $46 million in tariff savings in the EU market for Kiwi exporters this season.

Parliament is set, this week, to complete the final legislative processes required to bring the New Zealand – European Union Free Trade Agreement (NZ-EU FTA) into force months earlier than expected.  

“This agreement offers significant benefit for our economy, and an earlier entry into force will see tariff savings of $43 million for Kiwifruit exporters, and $3 million for Onion exporters this season,” said Mr McClay.

“All parties involved in the committee process agreed to complete the legislative process by the end of March. This will mean the agreement can enter into force on the first day of the second month, 1 May, instead of July or August, which would have excluded much of this year’s Kiwifruit and Onion exports.”

The EU has completed its ratification processes, and the agreement has been signed off by the European Parliament and Council.

“It’s now up to us to deliver and do our part to bring the agreement into force – and that is what we’re doing,” the Minister said.

“The FTA will level the playing field for Kiwi businesses, increase the resilience of our economy, and contribute to the Government’s target of doubling our export value in 10 years.”

“Once in force, over 70% of New Zealand’s exports will be covered by our FTA network. Meaning free and fairer market access for New Zealand exporters.”  

Benefits of the deal include:

•    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 EU is New Zealand’s fourth-largest trade partner, with two-way goods and services trade worth NZ$20.2 billion in 2022, accounting for 10.3per cent of New Zealand’s total trade in goods and services. 
•    Negotiations on the NZ-EU FTA concluded on 30 June 2022. The Agreement was signed on 9 July 2023 in Brussels. 

Find more information on the NZ-EU FTA at www.mfat.govt.nz/eufta.

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