New Zealand: EU completes ratification of “state-of-the-art trade agreement”

Thank you, Secretary of State Xiana Méndez and the Spanish Presidency, for chairing this meeting.

The clear highlight of today’s meeting was the Council adoption of the EU-New Zealand free trade agreement.

This means that the work on the EU’s side is now complete; as soon as New Zealand completes their own procedures, the agreement can enter into force.

I would like to thank the Council for their overwhelming support and swift adoption of this agreement. This followed massive support at the European Parliament.

This is a milestone in our trade agenda.

Let me remind you of the benefits of this state of the art FTA:

• The deal is expected to cut some €140 million a year in duties for EU companies from day one.
• Bilateral trade is expected to grow by up to 30% within a decade thanks to this deal. EU annual exports could potentially grow by up to €4.5 billion.
• Meanwhile, EU investment into New Zealand has a potential to grow by up to 80%.

This landmark agreement also includes unprecedented sustainability commitments, including respect of the Paris Climate Agreement and core labour rights.

Moreover, the deal also liberalises environmental goods and services at entry into force.

So the trade in such products will become more efficient, boosting the green transition.

EU farmers will have much better opportunities to sell their produce in New Zealand immediately upon application of the agreement. Tariffs will be eliminated as of day one on key EU exports such as pig meat, wine and sparkling wine, chocolate, sugar confectionary and biscuits.

For the first time ever in an EU free trade agreement, the deal has a dedicated sustainable food systems chapter, a dedicated trade and gender equality article and a specific provision on trade and fossil fuel subsidies reform.

Many of the deal’s innovative sustainability features are a first of their kind.

Aside from New Zealand, we had several other important items on the agenda, starting with the WTO.

We discussed preparations for the 13th WTO Ministerial Conference, (MC13).

The main objective for the EU and many other WTO Members is to restore a reformed, fully functioning 2-tier dispute settlement system by 2024, as agreed at MC12 last year.

There are other areas where we need to reach results, including:

• WTO dispute settlement reform;
• Agriculture;
• Fisheries subsidies reform;
• Launching discussions on key issues for the trading system, such as state intervention;
• The extension of the moratorium on customs duties on electronic transmissions.

Discussions so far have been promising, but more work is needed if we want to deliver at MC13.

We also discussed final steps to signing the trade deal with Chile.

The EU and Chile have been close trading partners for a long time; indeed, our current Association Agreement was signed more than 20 years ago.

Last year, we and the Chileans concluded negotiations to modernise and upgrade the agreement.

Now I’m confident that the necessary preparations to sign this agreement will be completed by the end of the year. And we will be able to sign this agreement still under the Spanish Presidency.

Together, we will diversify and strengthen our economic resilience while increasing opportunities for exports and investments.

Moreover, better access and sustainable investment in critical raw materials such as lithium will help us both make progress in our respective green transitions.

Speaking of trade agreements, we also discussed the state of play of our trade agreements.

We began by discussing Sustainable Investment Facilitation Agreements (or SIFAs).

We signed our first ever SIFA with Angola on 17 November.

The agreement aims at improving business climate and sustainability across the economy. It is expected to attract new EU investment to sectors where Angola’s potential is currently untapped.

Notable opportunities for investments include green energy, agri-food value chains, digital innovation, fisheries, logistics, and critical raw materials.

We are now exploring the possibility of preparing SIFAs with other partners in the near future.

We also discussed some more “traditional” agreements, such as the FTA with Australia.

There, we are very disappointed with the outcome. A deal was well within reach, and yet the Australian side backtracked at the last minute by re-tabling old demands that did not reflect our recent negotiations.

While we were eager to reach an agreement, we always prioritise substance over speed.

Nevertheless, a fair deal is in everyone’s interest, and so our door remains open.

Finally, we discussed the agreement with Mercosur.

This Agreement is of major geostrategic and economic importance. It can help mitigate the impacts of the Russian invasion in Ukraine, strengthen our mutual economic security, and promote the green transition.

We remain fully committed to push the EU-Mercosur Agreement towards the finish line before the end of the year, as stated by Presidentvon der Leyenand Mercosur countries recently.

We also discussed sanctions implementation. Our response to Russia’s unprovoked and unjustified invasion of Ukraine has been strong, with eleven packages of sanctions imposed on Russia so far and the proposal for the 12th package just adopted by the Commission and currently being discussed by the Council.

The Member States are on the front line of this work, and together we have made Russia and Belarus feel the consequences of their aggression.

Source – EU Commission