In a world marked by shifting trade dynamics and evolving sustainability standards, the recent signing of the EU-New Zealand Free Trade Agreement (FTA) brings forward a new era of economic cooperation. At Gedeth Network, we recognize the profound implications of this landmark agreement, not just for businesses but also for global efforts towards a more sustainable and equitable future. With the EU being New Zealand’s third biggest trade partner, and trade in goods reaching almost €9.1 billion in 2022 , this new free trade agreement could have a significant positive impact on both economies. In this blog article, we delve into the key highlights of the EU-New Zealand FTA and offer insights into its potential impact on businesses and the broader economy.
Unlocking Economic Opportunities
The EU-New Zealand FTA holds immense promise for businesses on both sides of the equation. By eliminating tariffs and streamlining trade processes, the agreement is expected to catalyze significant growth in bilateral trade. With an estimated reduction of €140 million in duties for EU companies annually, businesses can anticipate expanded market access and increased export opportunities. Furthermore, projections suggest a surge in EU exports by up to €4.5 billion annually, coupled with a potential 80% increase in EU investment in New Zealand. These figures underscore the transformative potential of the FTA in driving economic growth and fostering cross-border collaborations.
Market Access and Business Expansion
For businesses, the FTA represents more than just tariff reductions; it opens doors to new markets and sectors ripe for exploration. With tariffs eliminated on key exports such as pig meat, wine, and confectionery, EU producers stand to benefit from enhanced access to the lucrative New Zealand market. Moreover, the agreement facilitates entry into New Zealand’s services market, spanning industries such as financial services, telecommunications, and transportation. This newfound market access presents an array of opportunities for businesses, from large corporations to small and medium enterprises (SMEs), looking to expand their footprint and tap into new revenue streams.
EU to New Zealand: The European Union presents New Zealand with a vast market opportunity for its exports, particularly in the agricultural and food sectors. With the elimination of tariffs on key exports such as pig meat, wine, and confectionery, New Zealand producers gain enhanced access to the lucrative EU market. Additionally, the EU brings advanced technological expertise and a commitment to sustainability, offering avenues for collaboration and knowledge exchange.
New Zealand to EU: New Zealand, renowned for its high-quality agricultural products and innovative practices, offers the European Union a wealth of opportunities in the agri-food sector. With the elimination of tariffs on New Zealand exports such as meat, dairy, and wine, EU consumers gain access to premium New Zealand products. Additionally, New Zealand’s strategic location in the Indo-Pacific region presents opportunities for EU businesses seeking to expand their presence in this burgeoning market.
Pioneering Sustainability Standards
What sets the EU-New Zealand FTA apart is its groundbreaking commitment to sustainability. By aligning with the Paris Climate Agreement and integrating provisions for gender equality and sustainable food systems, the agreement sets a new standard for trade agreements worldwide. This emphasis on sustainability reflects a growing recognition of the interconnectedness between economic prosperity and environmental sustainability. For businesses, embracing sustainable practices isn’t just a moral imperative; it’s a strategic imperative. By aligning with the sustainability goals outlined in the FTA, businesses can not only mitigate risks associated with climate change but also unlock opportunities for innovation and market differentiation.
Embracing a New Era of Trade and Sustainability
As the EU-New Zealand FTA moves towards ratification and implementation, businesses must prepare to navigate a rapidly evolving landscape. At Gedeth Network, we view the agreement as a catalyst for positive change, driving economic growth while advancing sustainability goals. By seizing the opportunities presented by the FTA, businesses can position themselves as leaders in a more interconnected, resilient, and sustainable global economy. As we embark on this journey together, let us embrace the principles of collaboration and innovation.
In words of our CEO, Juan Millán who is also VP of ASBA (a non profit organization that connects Spain with Australia and New Zealand) says that we have seen an exponential growth of interest in the New Zealand market from Spanish and Portuguese companies. In fact, we have several project targeting both markets in the next months. As an example, AEP, the largest Portuguese business association founded in 1849 hired us to explore both market in March 2024 https://aep-oceania-trademission2024.com/
