The European Union and New Zealand announced a free trade agreement

The European Union (EU) and New Zealand announced on Thursday that they had finalized the final details of a free trade deal that promises to boost trade by 30% and raises concerns among European manufacturers.

“This is a historic moment in our cooperation … This is a strong and modern trade agreement. It offers great opportunities for our companies, our farmers and consumers,” said European Commission President Ursula van der Leyen.

The official stressed that the EU “is already New Zealand’s third largest trading partner and with this agreement, we can increase trade between the two of us by 30%”.

“This is a big move. Farmers on both sides will benefit,” he added.

Precisely this aspect of the agreement raised concerns among European farmers.

“Farmers on both sides will benefit … because we will work together on sustainable food systems. We will work together on animal welfare, feed and fertilizer, reducing pesticides,” van der Leyen said.

For her part, New Zealand Prime Minister Jacinda Ardern said the successful conclusion of the talks was “a positive outcome for both New Zealand and the European Union”.

According to Ardern, the agreement announced this Thursday “represents great business opportunities for our exporters, both small and large companies.”

This understanding will “provide real-world business benefits as our economies recover from Covid and manage the economic shocks and instability of war.”

– European Farmers –

The European Commission said in an official statement that the agreement was reached “taking into account the interests of EU producers of sensitive agricultural products” such as dairy products, beef and sheep, ethanol and corn.

For these sectors, the agreement would allow zero-duty imports from New Zealand “in limited quantities only,” the note noted.

The report also highlights that “EU agricultural producers will have better opportunities to sell their produce in New Zealand immediately after the agreement is implemented”.

In France, organizations representing beef and dairy producers expressed their alarm “about the arrival of several thousand tons of products (…) without demanding compliance with our agricultural production standards”.

The companies mentioned the use of herbicides and pesticides that are not approved in the EU but are still used in New Zealand.

The EU pledged to adopt a “strong control” system and ensured that all imported food was “in accordance with the rules” of the group.

The text of the agreement will now undergo a thorough review to check that it complies with legal provisions in the EU and New Zealand, and will be translated into all official languages ​​of the bloc before being submitted to the European Council. .

The EU is currently negotiating potential free trade agreements with India, Indonesia and Australia. The agreement with Mercosur, formally announced, has not yet been ratified by the European Union.

Following the announcement ceremony, European Commission Executive Vice-President Valdis Dombrovskis said negotiations with Chile and Mexico were continuing.

As for Chile, the official said the commission is looking forward to contacts with the “new government” of Gabriel Boric and “we are moving towards the next steps”.

Meanwhile, he added, “We are discussing the legal structure of the ratification with the Mexican authorities” as talks between the parties continue.

ahg/mb