12. Question No. 12—TradeTIM VAN DE MOLEN (National—Waikato) to the Minister for TradeQuestion No. 12—Trade12. TIM VAN DE MOLEN (National—Waikato) to the Minister for Trade: What steps is he undertaking to progress the New Zealand-European Union Free Trade Agreement?Hon TODD McCLAY (Minister for Trade): Today the coalition Government will have with the House the first reading of the implementation legislation to start the process to quickly implement the New Zealand - EU free-trade agreement (FTA). We will progress quickly with the implementation of this bill so that New Zealand exporters can take advantage of its benefits as soon as possible. You see the European Union has already completed its part of the ratification process before New Zealand. New Zealand exporters are waiting on the New Zealand Parliament to complete the process so that the agreement can enter into force. This coalition Government is moving quickly so that exporters particularly in provincial New Zealand can benefit from tariff reductions of up to $100 million something that could have been done last year if the last Government had introduced the bill and got it through before the election.Tim van de Molen: Why is this deal so important to New Zealand exporters?Hon TODD McCLAY: Well until now many New Zealand products have been effectively locked out of the EU market due to high tariffs and restrictive quotas. For instance duties on mānuka honey production will reduce by 17.3 percent to 0; the kiwifruit growers benefit from tariff savings of $37 million on entry into force. The FTA finally levels the playing field for Kiwi businesses exporting to the EU where many of their key competitors already have competitive access. These savings would've benefited New Zealand exporters had the last Government introduced legislation and got it through before the last election.Tim van de Molen: What else does the FTA deliver for New Zealand exporters?Hon TODD McCLAY: Well when fully implemented the FTA is set to provide an annual boost to our GDP of up to $1.4 billion and to our exports to the EU by up to $1.8 billion each year. For the first day of entry into force 91 percent of New Zealand's current goods trade into the EU are duty-free increasing to 97 percent. Unfortunately the commercially meaningful gains that the dairy and red meat sector expected by our farmers were not delivered in this deal. Access will not be fully liberalised for these products but quotas do create some additional market access on improvement of status quo. Overall the FTA creates jobs and grows wealth for all New Zealanders which is why we want to get it into force as quickly as possible.Hon Damien O'Connor: When does the Minister expect to sign the free-trade agreement with India?Hon TODD McCLAY: Well long before that Minister would've when he was in Government because the Labour Party said it wasn't a priority a deal wasn't being done. I would say however there is great interest across New Zealand of all New Zealanders in a Government looking out on the world stage and I know that that member is very keen to join the rest of his colleagues who have left the Parliament on the world stage soon.Tim van de Molen: What are some of the specific benefits of this deal for the agricultural sector?Hon TODD McCLAY: Well a number of key agricultural products will benefit from significant tariff savings from day one of the agreement: 99.9 percent of New Zealand's current horticultural trade will enter the EU tariff-free at the entry into force—a tariff saving of $46 million for our growers. Tariffs will be eliminated immediately on kiwifruit onions apples and other hort products; 99.5 percent of New Zealand's current fish and seafood trade will enter the EU tariff-free from day one which is why the coalition Government wants to so urgently get this agreement into force. This is a Government of action not talk.