New Zealand and the European Union (EU) finalized a Free Trade Agreement (FTA) on 9 July 2023.
The agreement came into effect on 1 May 2024, heralding a new era in trade relations between the two parties.
Key Highlights of the NZ-EU FTA:
- Immediate elimination of duties on 91% of New Zealand’s goods exports to the EU, with a gradual increase to 97% over seven years.
- This FTA opens up significant opportunities for New Zealand businesses, granting access to one of the largest trading markets globally.
Negotiation Scope:
- The negotiations, led by Customs, cover critical areas such as Rules of Origin, Customs Procedures, Trade Facilitation, trade in goods, and intellectual property border enforcement.
Tariff Changes and Quotas:
- Most New Zealand goods entering the EU will have tariffs removed upon the FTA’s commencement.
- For items like meat and dairy, tariffs will remain but with expanded quota volumes and reduced in-quota tariff rates, with further increases expected.
Claiming Tariff Preference:
- Under the EU FTA, claiming preferential tariff treatment relies on importer knowledge or a written/electronic statement of origin from the exporter.
- Rules of Origin (ROO) determine eligibility for tariff preferences based on factors such as value added, tariff classification changes, or specific processes.
Geographical Indications (GIs):
- The agreement protects Geographical Indications (GIs), identifying products based on their origin and quality.
- New Zealand extends its GI regime to cover agricultural products, foodstuffs, and beverages, with EU producers exclusively using protected EU GIs in New Zealand.
Implementation and Benefits:
- New Zealand exporters must adhere to Rules of Origin criteria for tariff advantages, allowing self-declaration of origin.
- The FTA offers enhanced trade relations, benefiting businesses in both New Zealand and the European Union.
Source/ recommended read:
