2024-05-01 00:00:14
The EU and New Zealand have been linked by a new, far-reaching free trade agreement since Wednesday. The agreements, which came into force on May 1st, provide for the almost complete elimination of tariffs. According to previous information from the EU Commission, taxes for EU companies are expected to decrease by around 140 million euros annually. Overall, bilateral trade is expected to grow by up to 30 percent within a decade.
EU exports to the country in the southwest Pacific are expected to increase by up to 4.5 billion euros annually. In order to take into account the interests of European agriculture, some dairy products, beef and sheep meat, ethanol and sweet corn, among others, were excluded from trade liberalization. Instead, according to the Commission, only limited quantities of duty-free imports or imports with lower duty rates from New Zealand are permitted through so-called tariff quotas.
The agreement is also considered the EU’s first to implement a new approach to sustainable development. It even allows for sanctions in the event of serious violations of fundamental labor law principles or climate policy obligations under the Paris Agreement.
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