23 May 2018
A Free Trade Agreement (FTA) with the European Union (EU) could boost exports by up to $NZ2 billion a year and save New
Zealand hundreds of millions of dollars a year.
That’s the view of the New Zealand Europe Business Council (NZEBC), an umbrella organisation representing the business
interests of all European nations in New Zealand, in response to news that FTA negotiations between New Zealand and the
EU have finally got off the ground in Brussels.
NZEBC President Frank Olsson says current annual trade between the EU and NZ is worth more than $NZ20 billion a year,
“so even small improvements in the conditions for trade represent significant dollars.”
“This is an important milestone in many ways. An FTA will bring benefits to both New Zealand and the EU by facilitating
trade of goods and services and cultural connections and should contribute to openness between all the nations involved.
For the EU, it is important to cement the free-trade concept as widely and solidly as possible, especially in uncertain
times where we see some disturbing developments elsewhere on the global trade front.
“New Zealand’s position in the South Pacific, with close access to the many small Pacific nations as well as major Asian
markets, adds importance to the prospect of an FTA.”
Mr Olsson says a key EU emphasis to this point has been to ensure that the benefits of the FTA filter through as broadly
as possible – “trade for all” - and not only accrue to a few major corporations. “The goal is to make access easier and
for small and medium-sized businesses to extend their reach to the huge EU market and to facilitate two-way commerce.”
He says work to get an FTA has been underway for a decade and has been the Council’s main focus for the last five years.
“Given the many countries that already have FTAs with Europe, completing our own FTA will eliminate a disadvantage and
put us on a more equal footing with other favored nations.”
NZ Prime Minister Jacinda Ardern’s recent visit to Europe where she met with the leaders of a number of key EU countries
was “very timely”, Mr Olsson says. “She was undoubtedly a catalyst in helping overcome any lingering doubts among some
EU countries about the merits of an FTA with New Zealand.”
Mr Olsson says the FTA is expected to take around two years to hammer out – “and that is relatively quick; it can take
much longer if there are a number of sticking points. But we don’t see that happening in this case. There are many
details to be discussed and worked out but the general position from both parties is very positive, based on shared
values and historic cultural, educational and research co-operation.”
Agriculture has been cited as an area of issue by some and it was unrealistic to expect tariff-free trade for all
agricultural products, says Mr Olsson. “But we don’t foresee there being any major hindrances that can’t be worked
through in time.”
Mr Olsson says the negotiations will also give increase weighting to environmental and social issues. “That includes
actions to mitigate climate change as well as seeking ways to widen the distribution of achievable benefits – trade for
all. We see a deep mutual commitment from both sides to shared values, openness and transparency and the avoidance of
protectionism.”
Ends