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EU-New Zealand Free Trade Agreement Comes into Effect

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The recent enactment of the Free Trade Agreement (FTA) between the European Union (EU) and New Zealand is poised to substantially enhance bilateral trade exchanges and fortify the EU’s relations with “a like-minded partner in the economically vibrant Indo-Pacific region.”

According to an impact evaluation, the FTA could potentially spur a 30% uptick in trade volume, accompanied by annual cost savings of 140 million euros for enterprises owing to the abolition of tariffs. This encompasses various goods such as automobiles, machinery, chemicals, pharmaceuticals, textiles, apparel, and footwear. Additionally, the agreement is anticipated to catalyze a significant surge in EU investments in New Zealand, potentially exceeding 80%.

Beyond simplifying trade processes, the EU-NZ FTA presents considerable benefits. It streamlines regulatory compliance for businesses, bolsters protections for intellectual property, and facilitates exports by small enterprises through a dedicated segment. Noteworthy is the FTA’s establishment of a novel benchmark for sustainability, incorporating commitments to the Paris Climate Agreement and safeguarding fundamental labor rights.