The European Parliament gives the green light to a free trade agreement between the EU and New Zealand

Strasbourg (France), November 22 (EFE).- The European Parliament gave the green light this Wednesday to a free trade agreement between the EU and New Zealand, which will eliminate New Zealand’s tariffs on EU exports for the first time. , including sanctions for non-compliance with climate and labor obligations.

Therefore, the European Parliament – with 524 votes in favor, 85 against and 21 votes against – approved the ratification of this trade agreement, which, according to MEPs, is a “central element” to strengthen the EU’s “position, role and importance” in the Indo-Pacific region.

Once it comes into effect, all New Zealand tariffs on EU club exports will be eliminated and 98.5% of EU tariffs on New Zealand trade will be eliminated after seven years.

The agreement provides for the protection of EU wines and distilled beverages such as Polish vodka, Rioja or Prosecco, as well as a list of 163 “popular” food products, as well as protection for European producers. Like beef and dairy products.

It also includes, for the first time, binding commitments – in the event of non-compliance – with key standards of the Paris Climate Agreement and the International Labor Organization (ILO).

Daniel Kaspary, MEP of the European People’s Party (EPP) and rapporteur for the report, promised at a press conference ahead of the vote that it was the “most modern” trade deal the EU had reached and an “example”. “For futures contracts.

“It has an independent chapter for SMEs (small and medium-sized businesses), digital commerce, and takes into account responsibilities related to the fight against climate change and economic sanctions,” Caspari explained.

Bilateral merchandise trade between the EU and New Zealand is set to reach €9.1 billion in 2022, making the Community Club the South Pacific nation’s third largest trading partner.

The European Commission (EC) expects trade between the two regions to increase by 30% and investment from the EU to New Zealand by more than 80%.

For this reason, MEPs stress that this trade agreement creates opportunities for European companies to enter the contract market on an equal footing with local companies.

“Our companies will have more export opportunities, especially SMEs, and we will be in a better position in global competitiveness to determine what future international trade will look like,” Kaspari said.

Member states are expected to give the green light to the deal next Monday, November 27, and it is expected to enter into force in mid-2024, once ratified by New Zealand. EFE

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