The European Union has put pen to paper on a free trade arrangement with New Zealand.
A new agreement will look to increase EU exports by €4.5 billion a year, and will cut about €140 million a year in duties for the bloc’s companies, with the goal of boosting bilateral trade by 30 per cent within a decade and investment to New Zealand by 80 per cent, according to a joint statement on Sunday.
“It’s an ambitious and very well-balanced free trade agreement,” European Commission President Ursula von der Leyen told reporters in Brussels. “It provides plenty of opportunities for our respective businesses.”
The agreement is part of the bloc’s strategy to develop trade relations with trusted partners, including Australia.
“Good progress” is being made toward a deal with Canberra, with a new round of talks set for the coming week, according to Executive Vice-President Valdis Dombrovskis.
The New Zealand agreement will eliminate tariffs on EU exports such as pig meat, wine, chocolate and biscuits, and protect over 2,000 products, including Prosecco as well as Feta and Manchego cheeses.
It will open up the market for sectors in financial services, telecommunications, maritime transport and delivery services.
The EU Commission and New Zealand also signed the association agreement on the participation of New Zealand to Horizon Europe, the EU’s research and innovation programme.
The UK’s entry to the Horizon project has been stalled over concerns from the prime minister over the price tag.
Rishi Sunak is seeking “value for money” and is still considering a UK-based alternative to the collaboration scheme known as Pioneer, Downing Street said last Thursday.
No 10 was insisting a “deal has not been agreed” but sources have said that a draft text produced after months of negotiations is with Sunak.
The UK was excluded from the £85 billion scheme in a tit-for-tat retaliation over post-Brexit trading rules for Northern Ireland in 2020.
Related: Support for UK to rejoin the EU now at 60%, new poll reveals
