EU exports to New Zealand could increase by up to €4.5 bln: EC

The European Union and New Zealand have completed negotiations on a trade agreement. The deal is expected to increase the value of bilateral trade by 30 percent, with annual exports from the EU potentially jumping by up to €4.5 billion, the European Commission reported.

The EC said that EU investment in New Zealand could increase by as much as 80 percent. From the first year of the agreement's application, companies from EU countries will benefit from tariff rebates totaling about €140 million a year.

"New Zealand is a key partner for us in the Indo-Pacific region. This trade agreement opens up major market opportunities for businesses, farmers, and consumers on both sides," Ursula von der Leyen, chairwoman of the EC, said.

The agreement will provide companies with, among other things, the elimination of all tariffs on EU exports to New Zealand, the opening of the services market in New Zealand in critical sectors such as financial services, telecommunications, maritime transport and supply services, and ensuring non-discriminatory treatment of EU investors in New Zealand and vice versa.

The agreement also provides better access for EU companies to public procurement in New Zealand for goods, services, and works concessions. New Zealand's public procurement market is worth about €60 billion annually.

(PAP)