Debate: EU/New Zealand Free Trade Agreement
Date: TUESDAY, 21 NOVEMBER 2023
Speaker: Valdis Dombrovskis
Language: EN

Less than 18 months ago, President von der Leyen and the then New Zealand Prime Minister Ardern announced the political conclusion of this deal after several days of ministerial talks between myself and New Zealand Minister O’Connor. When we announced this deal, it was clear that it would become known as the most modern and progressive free trade agreement yet. In fact, we place sustainability right at the heart of the agreement: climate, environment, economic and social sustainability. This agreement speaks to the shared values of the EU and New Zealand. We are partners who see eye to eye in many ways, including in support for multilateralism and rules-based international order. We are dynamic exporting economies, we are strong proponents of meaningful climate action, we are firm believers in supporting agri-food producers and rural communities. In strategic terms, I believe that the conclusion of our FTA sends a strong signal at the difficult moment of heightened geopolitical tensions. First and foremost, it shows a joint commitment to a rules-based trading system. The agreement delivers on an important part of the EU’s 2021 Indo-Pacific strategy. Thanks to the tighter economic relations with such a trusted partner, we will be able to continue diversifying our trade relations. This agreement will make us stronger, more resilient and more connected to this region in the world. It builds on the agreements which we have in place in the broader region with Japan, Korea, Singapore and Vietnam. This is a very comprehensive trade agreement. I will reiterate that it is a really modern and state-of-the art deal in the following ways: the FTA reflects our joint high ambitions to offer new market opportunities to business operators from both sides, while reinforcing our joint commitment to strong ambitions on sustainable development. It contains the most ambitious sustainability commitments ever included in a free trade agreement. Let me give you a flavour of just some of its innovative features. For example, the FTA reflects the outcome of the 2022 Trade and Sustainable Development Review, with sanctionable commitments to the Paris Agreement on Climate, as well as core labour standards. It is important to ensure we tackle the climate emergency and safeguard workers’ rights. With this deal, the EU and New Zealand are now leading the way internationally. The agreement also contains novel commitments on circular economy, deforestation, carbon pricing and protection of the marine environment, and liberalises environmental goods and services at entry into force. The Trade and Sustainable Development chapter also includes dedicated trade and gender equality provisions aimed at advancing gender equality and the economic empowerment of women. Furthermore, there is a chapter specifically addressing the Maori, the indigenous people of New Zealand. Many of these items are the first of their kind for the EU. Once the agreement enters into force, we estimate a potential to increase bilateral trade by up to 30%. Let me elaborate on a few key ways in which we expect this to come about. The deal will cut up to EUR 140 million a year in duties for EU companies from the first year of application. European farmers and the food sector will see new business opportunities in New Zealand as a trade agreement removes all tariffs at entry into force on the EU agri-food exports. Furthermore, the agreement protects 2 000 geographical indications for EU wines and spirits such as Prosecco, Polish vodka, Rioja, champagne and Tokaji. In addition, 163 iconic traditional EU food products such as feta cheese, Lübecker marzipan or Elea Kalamata olives will be protected in New Zealand. This agreement also contains important novel provisions on sustainable food systems and animal welfare. The FTA will open the New Zealand services market in key sectors such as financial services, telecommunications, maritime transport and delivery services. It will ensure non-discriminatory treatment to EU investors in New Zealand and vice versa. According to some estimates, the agreement can bring about an increase of EU investment flows into New Zealand of over 80%. It will improve access for EU companies to New Zealand government procurement contracts for goods, services, works and works concessions. It puts in place predictable and transparent rules for digital trade, facilitating data flows with trust and securing an online environment for consumers. The agreement will prevent unjustified data localisation requirements whilst preserving the policy space to implement the EU legislative  The vast majority of companies in both the EU and New Zealand are SMEs. The agreement will help these businesses export more through dedicated provisions on small and medium enterprises. The FTA will significantly reduce compliance requirements and procedures to allow for quicker flows of goods. Furthermore, New Zealand took significant commitments to protect and enforce intellectual property rights aligned with EU standards. So, honourable Members, I would like to conclude by thanking the INTA Chairman Bernd Lange, INTA rapporteur Daniel Caspary, INTA shadow rapporteurs from different political groups and also AGRI rapporteur Michaela Šojdrová, and their teams. Your continued support throughout the negotiations, as well as during the parliamentary process, has been crucial. At the risk of repeating myself, this has been an exemplary case of close and constructive interinstitutional cooperation. Of course, I would also like to pay tribute to my counterpart throughout these negotiations, New Zealand Trade Minister, Damien O’Connor. I want to acknowledge the excellent work done by DG Trade and our Chief Negotiator, Peter Berz, and his counterpart on the New Zealand side, Vangelis Vitalis. They showed great professionalism and diligence in steering the talks towards an agreement at political level. I look forward for today’s debate and the vote tomorrow, which I hope will see the Parliament give its consent to this state-of-the-art free trade agreement, which puts sustainability at its core.