Eu New Zealand Free Trade Agreement
Written by Wendy Garraty
The European Union and New Zealand have recently announced their intention to enter into a free trade agreement. This marks a significant milestone in the ongoing relationship between the EU and New Zealand and promises to bring numerous benefits to both sides.
The proposed agreement will cover a wide range of sectors, including agriculture, fisheries, and services. It aims to eliminate tariffs on goods and services and reduce non-tariff barriers, thereby facilitating increased trade and investment between the two parties.
New Zealand is already a significant trading partner for the EU, with trade between the two worth over €8 billion in 2020. The proposed agreement is expected to further strengthen this relationship by increasing the volume and variety of goods and services that can be traded.
For New Zealand, the agreement represents a significant opportunity for increased trade with one of the world‘s largest markets. The EU is home to over 450 million consumers, making it a hugely important market for New Zealand exporters.
From an economic standpoint, the agreement is expected to generate significant benefits for both parties. The European Commission estimates that the agreement could boost EU exports to New Zealand by up to 53%, while New Zealand‘s exports to the EU could increase by up to 20%.
The agreement also has important geopolitical implications. It comes at a time when the global trading system is facing significant challenges, with the rise of protectionism and trade wars threatening to undermine the benefits of globalization. The EU-New Zealand free trade agreement sends a strong message that free trade remains an important tool for promoting prosperity and cooperation between countries.
Of course, there are still many issues that need to be resolved before the agreement can be signed. Negotiations will need to cover a wide range of issues, including intellectual property rights, labor standards, and environmental protections. However, both sides are committed to reaching an agreement that is beneficial for all parties involved.
In conclusion, the proposed EU-New Zealand free trade agreement represents a significant opportunity for increased trade and investment between two important economic partners. If successful, it could generate significant economic benefits for both parties and provide a model for future free trade agreements in an increasingly challenging global economic environment.