5. Question No. 5—TradeTIM VAN DE MOLEN (National—Waikato) to the Minister for TradeQuestion No. 5—Trade5. TIM VAN DE MOLEN (National—Waikato) to the Minister for Trade: What actions has the Government taken to support New Zealand trade?Hon TODD McCLAY (Minister for Trade): Today the House will complete the final legislative process required to bring the New Zealand - European Union free-trade agreement (FTA) into force on 1 May many months earlier than expected. This legislation is being passed in a record time of seven weeks so that New Zealand businesses can realise benefits as soon as possible. In particular this early entry into force date means our kiwifruit industry will see $43 million worth of tariff savings this year. We also estimate that 35000 tonnes of onions will be exported to the EU after 1 May saving our onion exporters $3 million per season. Without this early entry into force both the kiwifruit and onion growers would have missed the season's exports and paid many tens of millions of dollars' worth of tariffs.Sam Uffindell: Why has the Government moved so quickly to get this agreement into force?Hon TODD McCLAY: Well the Government's drive to get the legislation passed in record time is to see the immediate tariff savings of $100 million per year on New Zealand's exports from day one. For the first day of implementation duties will be removed from 91 percent of goods exported. A wide range of sectors will see these immediate benefits: 99.5 percent of fish and seafood trade will enter tariff-free from day one as will 97 percent of New Zealand's wine and mānuka honey exports. The EU has completed its ratification process last year; it is now up to us to deliver and do our part to bring the agreement into force and that's what the House will do today.Catherine Wedd: What benefits will New Zealanders see as a result of this agreement?Hon TODD McCLAY: New Zealand will remove all tariffs on imports originating from the EU. New Zealand consumers and businesses will benefit from access to cheaper products imported from the EU on a range of goods including footwear apparel cosmetics furniture chocolate kitchen appliances machinery motorhomes forklifts and some agricultural goods. The EU is our fourth-largest services trading partner worth $4.4 billion. We estimate there will be significant savings between 10 to 20 percent in the costs for New Zealand service exporters that trade with the EU. The economic gains from the FTA will help to soften the impact of the cost of living increases for New Zealanders and helps to rebuild our economy. Tim van de Molen: How was it possible to get this legislation through so quickly?Hon TODD McCLAY: Well the EU - NZ FTA officially enters into force on the first day of the second month after the legislation has passed through the House. Therefore it was vital we fast tracked this legislation through Parliament as quickly as possible. I'd like to recognise the work done by the Foreign Affairs Defence and Trade Committee and members from all parties who worked collaboratively to speed up the process while still hearing the views from all submitted. I'd also like to recognise the considerable efforts of the Hon Damien O'Connor and all parties in this House for agreeing to progress the ratification of the EU FTA legislation so quickly.Hon Damien O'Connor: To the Minister: given the importance and the value of this agreement—SPEAKER: That's not a question word—the member's been here a long time.Hon Damien O'Connor: Sorry I got it—if this legislation is so important why did the Government prioritise the removal of smoking protection over the passage of this legislation?Hon TODD McCLAY: It's no wonder that member is no longer the Minister responsible. But what I would like to do is thank him for his hard work on an agreement that will help deliver for all New Zealanders and recognise how hard it must be to be a Minister for Trade in a Labour Government.