The Chris Hipkins Government’s strong record on trade, including unlocking access to some of the world’s biggest and most lucrative markets, is providing greater opportunities for people across Aotearoa New Zealand. That’s why I’m pleased to share that New Zealand and the European Union have now signed a new trade deal and I wanted to let you know what that means for us.
While overseas, Prime Minister Chris Hipkins announced that New Zealand and the European Union signed a ground-breaking Free Trade Agreement that will provide significant new access to a massive international market.
As a trading nation, we rely on international customers to purchase our goods and services and one in four New Zealanders’ jobs depend on trade. This new agreement is great news, especially for our local businesses, workers, farmers and growers, and it’s expected to boost our exports to the European Union by up to $1.8 billion per year by 2035.
From day one, the deal will cut costs for Kiwi exporters with tariff savings of $100 million per year on New Zealand exports – the highest immediate tariff savings of any New Zealand Free Trade Agreement, ever.
It will also provide significant new opportunities for exporters to boost and diversify their trade – helping them to succeed and to grow jobs. On top of this, trade helps to bring down the cost of living by delivering higher incomes and lower prices for many of the goods Kiwi households consume.
The recent flooding and severe weather has had an impact on a lot of people around the country, as did the pandemic – it’s been tough going. This new deal is the next step to accelerate our recovery. It won’t fix everything, but it will provide a boost for our regions as they grapple with the longer-term effects of Cyclone Gabrielle.
Our products, like kiwifruit, seafood, onions, honey, wine, butter, cheese, beef and sheep meat, are some of the very best in the world. And that’s a testament to New Zealand farmers, growers and exporters. We’re committed to backing them by providing as many trading opportunities as possible, and our agenda has huge momentum. Since taking office in 2017, we’ve secured or upgraded seven Free Trade Agreements.
There’s still more to do and we will continue to position New Zealand globally as a great place to trade with and visit, as we work hard to support businesses and grow our economy. More information on the NZ-EU FTA can be found at: www.mfat.govt.nz/eufta.
