A free trade deal between New Zealand and the European Union that puts the UK’s FTA “to shame” is set to come into force in May.
The trade agreement, signed last year in Brussels, is the final step in a years-long effort by New Zealand to secure tariff-free market access to the 27 European countries and 447 million people that make up the EU.
From May, 94 per cent of New Zealand product lines heading into the EU will be tariff-free, and after seven years this will rise to 97 per cent, eliminating much of the $115 million in tariffs paid by New Zealand exporters to the union.
It will mean savings for the kiwifruit industry of $43 million, and for the onion industry $3 million, “which actually makes a material difference for the growers”, Trade Minister Todd McClay said.
EU ambassador to New Zealand Lawrence Meredith said the deal had the “highest approval rating” of any free trade deal in the European Parliament, which had already ratified it.
“We think that’s an excellent deal for both sides.
“We’re see big economic opportunities for European Union businesses and I would look in particular at the investment area and infrastructure. We’re looking forward to the Government’s upcoming privatisation of public infrastructure.
“We believe that on the EU side there’s opportunities on wind energy, wind turbines, but potentially in other areas of major infrastructure.“
Mike Galsworthy, the chair of the European Movement, added: “The EU deal puts the UK FTA with New Zealand to shame.
“And it shows that, rather than freeing the UK to make deals that better suit our national interest, Brexit has diminished our deal-making leverage.
“We would do better at global trade if we worked with our European allies.”
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