EU/New Zealand Free Trade Agreement

The Committee on International Trade adopted the report by Daniel CASPARY (EPP, DE) containing a motion for a non-legislative resolution on the draft Council decision, on behalf of the Union, on the conclusion of the Free Trade Agreement between the European Union and New Zealand.

Members consider this agreement to be of major significance for bilateral relations between the EU and New Zealand and the promotion of rules- and values-based trade, in line with the European Green Deal. They stated that it is the most comprehensive, economically balanced and is the most ambitious and progressive EU trade deal to date in relation to its trade and sustainable development chapter. The agreement includes a dispute settlement mechanism to ensure that the rights and obligations contained in the agreement are respected, so that businesses, workers and consumers can enjoy its benefits.

Members strongly welcome the fact that the agreement integrates, for the first time, the new EU approach to trade and sustainable development and incorporates an unprecedented level of environmental and labour commitments in order to effectively implement the core ILO conventions ratified by the parties and the Paris Agreement. They also welcome the possibility of trade sanctions as a last resort in instances of serious violations of the Paris Agreement and the core ILO standards.

Members believe that the agreement will level the playing field with other trading partners that already have FTAs with New Zealand. The report noted the high level of tariff liberalisation under the agreement, which will entail the removal of 100 % of New Zealand tariffs on EU exports at entry into force and the lifting of 98.5 % of EU tariffs on New Zealand trade after seven years.

Noting the sensitive character of certain European agricultural sectors, the agreement limits the import of bovine meat to that of the highest quality grass-fed standard. The Commission is called on to monitor closely the management of tariff-rate quotas for agricultural products and report back to Parliament.

Dedicated chapters have been included concerning sanitary and phytosanitary matters, sustainable food systems, animal welfare, digital trade and SMEs.

Lastly, Members welcomed the agreement, which will create more sustainable free and fair-trade opportunities between the EU and New Zealand. They called or the European Parliament to consent to the agreement.