Goodbye tariffs!

EU: Free trade agreement with New Zealand in force

The EU and New Zealand have been linked by a new far-reaching free trade agreement since this Wednesday. The agreements, which came into force on May 1, provide for the almost complete elimination of customs duties. Consideration has been given to farmers.

It is expected that duties for companies from the EU will be reduced by around 140 million euros per year. Overall, bilateral trade is expected to grow by up to 30 percent within a decade.

Exemption for agriculture
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 sweetcorn, among others, have been exempted from trade liberalization. Instead, according to the Commission, only limited quantities of duty-free imports or imports with a lower duty rate from New Zealand are permitted through so-called tariff quotas.

A new approach to sustainable development will also be implemented for the first time. It even allows for sanctions in the event of serious violations of fundamental labor law principles or climate policy commitments from the Paris Agreement.