New Zealand and EU sign free trade agreement

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New Zealand and EU sign free trade agreement

After five years of negotiations, the EU and New Zealand have signed a free trade agreement. An official announcement was made on July 9 by the European Commision.

Bilateral trade is projected to grow up to 30% by 2033, with EU exports expected to rise as tariffs will be eliminated on key products such as pork and wine.

The deal is expected to cut some $153 million a year in duties for EU companies from the first year of application

The agreement is being praised by authorities for integrating the EU’s new approach to sustainable development announced in the Commission’s June 22 release: “The power of trade partnerships: Together for green and just economic growth.”

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“This modern free trade agreement brings major opportunities for our companies, our farmers and our consumers, on both sides. With unprecedented social and climate commitments, it drives just and green growth while reinforcing Europe's economic security,” says Ursula von der Leyen, president of the European Commission.

For the first time ever in an EU free trade agreement, the deal has a dedicated sustainable food systems chapter, a dedicated trade and gender equality article and a specific provision on trade and fossil fuel subsidies reform. 

The document also liberalizes environmental goods and services.

The text will be transmitted to the European Parliament for consent. After this, the Council can adopt the decision on conclusion, and once New Zealand notifies that it has also completed its ratification procedure, the agreement can enter into force.

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