The free trade agreement with the European Union comes into force

Prime Minister Chris Hipkins, European Commission President Ursula von der Leyen and Trade Minister Damien O'Connor in Brussels after New Zealand and the European Union signed a free trade agreement.

After years of negotiations, the agreement was signed last year by the previous government.
Photo: RNZ/Jane Patterson

Horticulture shipments are likely to be prepared to take immediate advantage of the free trade deal with the European Union that comes into force today, the EU ambassador in Wellington says.

New Zealand’s Free Trade Agreement (FTA) with the European Union (EU) comes into force from today.

While not everyone was happy with it, the hard-fought deal was expected to save $100 million a year in tariffs by removing tariffs on 91 percent of New Zealand goods exports to the EU, rising to 97 percent after seven years.

This was said by EU Ambassador Lawrence Meredith Morning report the agreement was “ambitious”.

‘Definitely a victory for both parties.

“Where we really see potential for substantial overnight gains, and I’m sure there are shipments lined up at the moment, is in horticulture, so for kiwis, apples and onions there are big immediate gains. “

Meredith’s message to New Zealand businesses was “let’s do it today”.

“There are real new opportunities. A trade deal is a piece of paper, as ambassador of the European Union I want to facilitate real new deals that deliver new prosperity and high-quality products for consumers from both the European Union and New Zealand.”

Opportunities for EU companies include green energy, green aviation and green shipping, he said.

Despite concerns that New Zealand would breach the FTA if it fails to maintain its 2030 climate targets, Meredith said he was confident both sides would be committed to implementing the Paris Agreement.

“That is very important for citizens across the European Union and across New Zealand.”

Labor leader Chris Hipkins, who was Prime Minister when the deal was signed, said it was an exciting day.

“It opens up such a huge range of opportunities for our exporters. If we take our beef exporters for example, we could see beef exports to the EU triple.

“We could supply 60 percent of the butter imported into the EU, we could supply that under this agreement and those are just two of the examples.”