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Posted: April 2, 2024Category: Updates

NZ-EU Free Trade Agreement to take effect on May 1, 2024

The NZ-EU Free Trade Agreement is set to take effect on May 1, 2024.

New Zealand's horticultural sector, a leading exporter to the EU valued at $714 million annually, will immediately benefit from a $46 million reduction in tariffs.

Fish and seafood producers will see tariffs totalling $20 million slashed on exports worth $241 million, ranging from 7-25 percent.

Key honey exporting regions, including Northland, Hawke's Bay, and the Coromandel, will enjoy phased removal of the 17 percent honey tariff over three years, with immediate relief for Mānuka honey.

The dairy and red meat sectors anticipate significant opportunities worth $600 million, opening up trade for products like butter and cheese after years of limited access. Access for beef expands significantly, and we could account for up to 96 percent of EU sheep meat imports, bolstered by our new FTA quota access.

Tariff elimination on EU imports will benefit New Zealand consumers and businesses, spanning footwear, apparel, cosmetics, furniture, chocolate, kitchen appliances, machinery, motor homes, forklifts, and select agricultural goods, reducing living costs and enhancing supply-chain flexibility.

New Zealand service providers, including independent professionals, will find streamlined visa processes and reasonable fees under the FTA, facilitating entry and temporary stays for business people. This will enhance competitiveness by providing access to EU specialists.

The FTA strengthens investment links between New Zealand and the EU, promotes services trade as part of the Trade Recovery Strategy 2.0, and offers unparalleled access to the EU's $3.45 trillion public procurement market.

The 'Most Favoured Nation' outcome ensures the FTA remains future-proofed, granting New Zealand the benefits of future EU agreements with other partners in services and investment.

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