P9_TA(2023)0418 – EU/New Zealand Free Trade Agreement (Resolution) – European Parliament non-legislative resolution of 22 November 2023 on the draft Council decision, on behalf of the Union, on the conclusion of the Free Trade Agreement between the European Union and New Zealand (06600/2023 – C9-0247/2023 – 2023/0038M(NLE))
Date: 2023-11-22
Institutions: Committee on Agriculture and Rural Development, Committee on International Trade, European Parliament
Subjects: New Zealand, free-trade agreement, ratification of an agreement, trade agreement (EU)








C_202404243EN.000101.fmx.xml












Official Journal of the European Union


EN
C series













C/2024/4243


24.7.2024






P9_TA(2023)0418

EU/New Zealand Free Trade Agreement (Resolution)


European Parliament non-legislative resolution of 22 November 2023 on the draft Council decision, on behalf of the Union, on the conclusion of the Free Trade Agreement between the European Union and New Zealand (06600/2023 – C9-0247/2023 – 2023/0038M(NLE))

(C/2024/4243)



The European Parliament,







—


having regard to the draft Council decision (06600/2023),










—


having regard to the Free Trade Agreement between the European Union and New Zealand (FTA), which was signed on 9 July 2023,










—


having regard to the request for consent submitted by the Council in accordance with Articles 91(1), 100(2), 207(4), first subparagraph, 218(6), second subparagraph, point (a)(v), and 218(7) of the Treaty on the Functioning of the European Union (TFEU) (C9-0247/2023),










—


having regard to the Joint Declaration on Relations and Cooperation between the European Union and New Zealand (1) of 21 September 2007,










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having regard to the Partnership Agreement on Relations and Cooperation between the European Union and its Member States, of the one part, and New Zealand, of the other part (2), signed on 5 October 2016,










—


having regard to Council Decision (EU) 2022/1007 of 20 June 2022 on the conclusion on behalf of the Union of the Partnership Agreement on Relations and Cooperation between the European Union and its Member States, of the one part, and New Zealand, of the other part (3),










—


having regard to the Council negotiating directives of 8 May 2018 for a Free Trade Agreement with New Zealand,










—


having regard to the Commission recommendation of 13 September 2017 for a Council decision authorising the opening of negotiations for a Free Trade Agreement with New Zealand (COM(2017)0469), and to the accompanying Commission impact assessment (SWD(2017)0289),










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having regard to its resolution of 6 October 2022 on the outcome of the Commission’s review of the 15-point action plan on trade and sustainable development (4),










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having regard to its resolution of 5 July 2022 on the Indo-Pacific strategy in the area of trade and investment (5),










—


having regard to its resolution of 26 October 2017 containing Parliament’s recommendation to the Council on the proposed negotiating mandate for trade negotiations with New Zealand (6),










—


having regard to its resolution of 25 February 2016 on the opening of FTA negotiations with Australia and New Zealand (7),










—


having regard to the final report of 13 March 2020 entitled ‘Trade Sustainability Impact Assessment in support of FTA negotiations between the European Union and New Zealand’, published by the Commission’s Directorate-General for Trade (8),










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having regard to the other bilateral agreements between the EU and New Zealand, in particular the agreements on sanitary measures applicable to trade in live animals and animal products (9) and on mutual recognition in relation to conformity assessment (10),










—


having regard to the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 20 June 2023 on ‘European Economic Security Strategy’ (JOIN(2023)0020),










—


having regard to the Commission communication of 22 June 2022 entitled ‘The power of trade partnerships: together for green and just economic growth’ (COM(2022)0409),










—


having regard to the Commission communication of 18 February 2021 entitled ‘Trade Policy Review – An Open, Sustainable and Assertive Trade Policy’ (COM(2021)0066),










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having regard to the Commission communication of 11 December 2019 entitled ‘The European Green Deal’ (COM(2019)0640),










—


having regard to the opinion of the Court of Justice of the European Union of 16 May 2017 in procedure 2/15 (11), pursuant to Article 218(11) TFEU, requested on 10 July 2015 by the Commission,










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having regard to the core conventions of the International Labour Organization (ILO),










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having regard to the UN Framework Convention on Climate Change, including the Paris Agreement of 2015,










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having regard to the opinion of the Committee on Agriculture and Rural Development,










—


having regard to its legislative resolution of 22 November 2023
                   (12) on the draft decision,










—


having regard to the TFEU, in particular Articles 91, 100, 168 and 207 in conjunction with Article 218(6)(a)(v) thereof,










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having regard to Rule 105(2) of its Rules of Procedure,










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having regard to the report of the Committee on International Trade (A9-0314/2023),










A.


whereas the EU and New Zealand are like-minded partners that share fundamental values, such as respect for human rights, democracy and the rule of law, and both support a rules-based trading system, with the World Trade Organization (WTO) as its centrepiece; whereas both parties are committed to fighting climate change and protecting social rights and are bound by the Paris Agreement and ILO conventions;










B.


whereas New Zealand is situated in the dynamic and strategically important Indo-Pacific region; whereas New Zealand is a member of the Comprehensive and Progressive Trans-Pacific Partnership, the Regional Comprehensive Economic Partnership, the Asia-Pacific Economic Cooperation and the Indo-Pacific Economic Framework for Prosperity;










C.


whereas bilateral trade in goods between the EU and New Zealand was worth EUR 9 billion in 2022 and the value of trade in services amounted to EUR 3,5 billion in 2021;










D.


whereas New Zealand is the EU’s 53rd largest trading partner for goods; whereas the EU is New Zealand’s third largest trading partner for goods; whereas agricultural exports to New Zealand accounted for 11,5 % (EUR 722 million) of its total exports to New Zealand in 2022; whereas agricultural exports accounted for 64,9 % (EUR 1 822 million) of its total exports to the EU in 2022;










E.


whereas New Zealand benefited from EUR 8,5 billion of EU foreign direct investment in 2020, making the EU the second-largest investor in New Zealand;










F.


whereas the economic impact assessment carried out by the Commission found that, as a result of the FTA, EU investment flows into New Zealand could grow by 80 % and bilateral trade could increase by 30 %; whereas increased trade will bring economic opportunities and economic growth for companies and consumers on both sides;










G.


whereas New Zealand is one of only six WTO members that do not have a preferential market-access arrangement with the EU; whereas New Zealand has trade agreements offering preferential access to 8 out of its 10 most important trading partners covered under preferential trade arrangements;










H.


whereas this is the first EU trade agreement aligned with the EU’s new approach to trade and sustainable development, which is based on the principle of cooperation and includes enforceable provisions with sanctions as a last resort in cases where the Paris Agreement and the core ILO conventions are breached;










I.


whereas open and fair trade is one of the four pillars of the EU’s Green Deal industrial plan; whereas trade agreements should be in line with the EU Green Deal’s objectives and targets and this alignment should be closely monitored;













1.


Considers this agreement to be of major significance for bilateral relations between the EU and New Zealand and the promotion of rules- and values-based trade, in line with the European Green Deal; considers, further, that it will bring benefits beyond purely economic gains;












2.


Emphasises the strategic importance of the agreement in the current geopolitical context and considers it a major step forward for the EU’s ambition of deepening relations with the region, as outlined in Parliament’s resolution of 5 July 2022 on the Indo-Pacific strategy in the area of trade and investment;












3.


Welcomes the fact that the agreement is comprehensive, economically balanced and is the most ambitious and progressive EU trade deal to date in relation to its trade and sustainable development chapter; highlights the fact that the agreement delivers on the priorities set out in Parliament’s resolutions of 25 February 2016 and 26 October 2017; notes that the agreement includes a dispute settlement mechanism to ensure that the rights and obligations contained in the agreement are respected, so that businesses, workers and consumers can enjoy its benefits;












4.


Strongly welcomes the fact that the agreement integrates, for the first time, the new EU approach to trade and sustainable development and incorporates an unprecedented level of environmental and labour commitments in order to effectively implement the core ILO conventions ratified by the parties and the Paris Agreement; welcomes the possibility of trade sanctions as a last resort in instances of serious violations of the Paris Agreement and the core ILO standards; calls on both parties to define a set of guiding principles to be considered essential for achieving the objectives of the Paris Agreement; asks for specific targets and timelines to be defined to complement the primarily cooperative activities in order to achieve sustainable practices; expects concrete progress to be made by New Zealand within a reasonable timeframe towards ratifying and effectively implementing two ILO core conventions (No 87 on freedom of association and the right to organise and No 138 on minimum age), in accordance with the commitments laid down in the agreement; welcomes the fact that the EU and New Zealand have agreed to reflect the ILO’s recent decision to add occupational health and safety to core labour standards, where appropriate; welcomes the fact that the agreement has a trade and gender equality article under the trade and sustainable development chapter; notes that the parties are expected to implement their gender-equality-related obligations under both the ILO and UN conventions in the context of eliminating discrimination against women in economic life and employment; welcomes the dedicated provision on trade and fossil fuel subsidy reform and progressive reduction; calls on the parties to intensify engagement on this issue at the WTO and to develop an implementation roadmap to clarify their bilateral ambition and joined-up efforts in relevant international forums; welcomes the fact that the agreement liberalises green goods and services at entry into force and contains a list of these goods and services; calls for a regular, systematic review of this list; points out that the EU and New Zealand will cooperate on the circular economy, deforestation-free supply chains and carbon pricing; stresses that the agreement includes a non-regression clause prohibiting the parties from weakening, reducing or failing to enforce labour and environmental standards in order to encourage trade; believes that the FTA sets a benchmark for sustainable trade and should be considered a gold standard in current and future FTA negotiations and reviews;












5.


Welcomes the inclusion of a chapter on Māori trade and economic cooperation, together with specific provisions regarding Māori in several other places in the agreement, and stresses the importance of all citizens and companies in the EU and New Zealand being able to benefit from the trade and investment opportunities that the agreement brings;












6.


Believes that the agreement will level the playing field with other trading partners that already have FTAs with New Zealand; notes the high level of tariff liberalisation under the agreement, which will entail the removal of 100 % of New Zealand tariffs on EU exports at entry into force and the lifting of 98,5 % of EU tariffs on New Zealand trade after seven years; notes the counter-seasonal nature of our respective agriculture production; notes that the sensitive character of certain European agricultural sectors has been duly taken into account through tariff-rate quotas and longer transition periods; welcomes the fact that this agreement limits the import of bovine meat to that of the highest quality grass-fed standard; calls on the Commission to monitor closely the management of tariff-rate quotas for agricultural products and report back to Parliament; welcomes the inclusion of dedicated chapters on sanitary and phytosanitary matters, sustainable food systems and animal welfare and calls on both parties to further exchanges on outcomes for sustainable agricultural practices; recalls that New Zealand has prohibited the transport of live animals by sea and that exchanges on this matter are of particular interest for upcoming EU efforts to enhance its animal welfare practices;












7.


Welcomes the protection that the agreement provides for the names of 163 European foodstuff geographical indications (GIs) and the complete list of EU GI wines and spirits (close to 2 000 names); highlights the fact that the agreement provides for the option to add more GI names in the future; notes that the agreement also includes comprehensive intellectual property provisions on copyright, trademarks and industrial designs; welcomes the progress made and recalls that the ultimate goal remains effective protection and enforcement on both sides;












8.


Believes that the market-access commitments on goods, given the removal of relatively high duties on industrial products such as cars and textiles, and the commitments on services, including delivery, telecommunications, financial and international maritime transport services, have the potential to significantly boost bilateral trade; considers that the agreement promotes transparency and the use of international standards to facilitate market access, while safeguarding the levels of protection that each party deems appropriate; notes that the agreement reaffirms the right of each party to regulate the pursuit of legitimate policy objectives; appreciates New Zealand’s acceptance of EU type-approval certificates and the provisions of the annex on wine and spirits, which will respectively facilitate trade in the vehicles and wine and spirits sectors;












9.


Welcomes the fact that the EU and New Zealand will reciprocally open up their procurement markets beyond what is already covered under the WTO Agreement on Government Procurement; stresses that EU companies will be allowed to submit tenders for New Zealand central and sub-central government contracts on an equal footing with local companies; calls on both parties to adopt sustainability criteria for procurement markets in accordance with the provisions of the FTA;












10.


Notes that the agreement includes a dedicated chapter on digital trade, which will ensure predictability and legal certainty in digital trade transactions and facilitate cross-border data flows, while respecting the EU acquis on the protection of data and privacy; welcomes the fact that the agreement will help to ensure a secure online environment for consumers and will preserve a high level of personal data and privacy protection in the EU; welcomes the inclusion of ambitious articles on the protection of source code and paperless trade;












11.


Highlights the fact that the vast majority of EU and New Zealand companies are small and medium-sized enterprises (SMEs); welcomes the inclusion in the FTA of a dedicated chapter on SMEs, which addresses their specific needs and will enable them to derive the maximum benefit from the agreement, namely through clauses under which both parties commit to transparency regarding market access and to sharing relevant information; calls for the prompt establishment by each party of the SME contact points and digital medium (such as an SME-specific website) to make sure that relevant information on market access is made readily available to SMEs;












12.


Calls on the parties to quickly establish their respective domestic advisory groups after the agreement enters into force and to ensure that they will be able to function properly and contribute actively to the implementation of the agreement, in particular in relation to the sustainability impacts;












13.


Welcomes the dedicated chapter on SMEs; considers, however, given that this FTA is considered to be a benchmark for future trade agreements, that more can be done to address the needs of SMEs and maximise their full benefit from the agreement; calls on the Commission to evaluate the effectiveness of all SME chapters in EU trade agreements, including an analysis of whether they meet the needs of SMEs, in order to maximise the full benefits of the agreements and to serve as a basis for the future formulation of SME chapters in trade agreements;












14.


Believes that this agreement is fully in line with the recent European Economic Security Strategy in that it provides a framework for reliable partners to address common security concerns when setting common high standards and providing for diversification, which is aimed at sustainable development and offers a model for other reliable partners;












15.


Welcomes the agreement, which will create more sustainable free and fair trade opportunities between the EU and New Zealand; calls for the European Parliament to consent to the agreement;












16.


Instructs its President to forward this resolution to the Council, the Commission and the governments and parliaments of the Member States and of New Zealand.






(1)  
            OJ C 32, 6.2.2008, p. 1.

(2)  
            OJ L 321, 29.11.2016, p. 3.

(3)  
            OJ L 171, 28.6.2022, p. 1.

(4)  
            OJ C 132, 14.4.2023, p. 99.

(5)  
            OJ C 47, 7.2.2023, p. 15.

(6)  
            OJ C 346, 27.9.2018, p. 219.

(7)  
            OJ C 35, 31.1.2018, p. 136.

(8)  Final report – ‘Trade Sustainability Impact Assessment in support of FTA negotiations between the European Union and New Zealand’, European Commission, Directorate-General for Trade, Directorate C – Asia and Latin America, Unit C2 – South and South East Asia, Australia, New Zealand, 13 March 2020.

(9)  Agreement between the European Community and New Zealand on sanitary measures applicable to trade in live animals and animal products (OJ L 57, 26.2.1997, p. 5).

(10)  Agreement on mutual recognition in relation to conformity assessment between the European Community and New Zealand (OJ L 229, 17.8.1998, p. 62).

(11)  Opinion of the Court of Justice of 16 May 2017, 2/15, ECLI:EU:C:2017:376.

(12)  Texts adopted, P9_TA(2023)0417.


ELI: http://data.europa.eu/eli/C/2024/4243/oj
ISSN 1977-091X (electronic edition)