NZ exports to EU surge by $3b under free trade deal, says Government
New Zealand exports to the European Union have surged by $3 billion in two years under the New Zealand-European Union Free Trade Agreement.
Trade Minister Todd McClay and the Indian Minister for Commerce and Industry, Piyush Goyal, signed the historic FTA between the two countries in front of a large group of NZ and Indian businesspeople.
Among those present was Labour's spokesperson on Trade, Damien O'Connor. The signing formalises the agreement the two countries reached just before Christmas.
Now that the deal has been signed, it will need to be ratified by Parliament, and while the public will have the opportunity to cfomment on the deal via the select committee process, its passage through Parliament is assured now that Labour has said it will support the deal.
Key Facts
- Deal signed in Delhi, India
- Tariffs covered: 95% of NZ exports
- Duty-free access (day one): 57% of exports
- Sheepmeat tariff previously: 30%
Billions in Export Potential
McClay says the deal will deliver thousands of jobs and billions of dollars in additional exports. He says it will create opportunities for our businesses to diversify and create strong trading relationships that provide economic security for New Zealanders.
"That is crucial in these times of global unrest," he says.
The FTA eliminates or reduces tariffs on 95% of NZ exports to India and almost 57% of our exports will be duty-free from day one including lamb, wool, coal, leather, most forestry and industrial products.
The signing was welcomed by New Zealand's red meat sector.
Strong Support From Exporters
Meat Industry Association (MIA) independent chair Nathan Guy says that once ratified, the FTA will expand New Zealand red meat exporters' trade options in a challenging global environment.
"Exporters are operating in a world of rising protectionism and ongoing volatility. Having a broader mix of markets and expanding our reach will help spread risk and provide more stability for farmers and exporters.
"India is a market with significant long-term potential. While we won't see immediate gains, this FTA charts a path to improve market access and create new opportunities for the red meat sector."
India Seen As Major Future Market
Beef + Lamb New Zealand chair Kate Acland says the agreement positions New Zealand in a market with strong promise.
"India is now the world's most populous country and is expected to become the third-largest economy within the next five years. As incomes rise in India, so will demand for high-quality natural protein.
"Access has been constrained due to a 30% tariff on New Zealand sheepmeat. This FTA will start the process of addressing those barriers and puts us in a stronger position as the market develops.
"The FTA can help build the red meat sector's resilience and enable us to keep delivering for the New Zealand economy," Acland says.
Frequently Asked Questions
What is the NZ-India free trade agreement?
It is a trade deal between New Zealand and India that reduces or removes tariffs on goods traded between the two countries.
Which NZ industries benefit from the India FTA?
Key beneficiaries include forestry, sheepmeat, wool, horticulture, leather and industrial products.
How much of NZ exports will be tariff-free?
Approximately 57% of New Zealand's exports to India will be duty-free from day one under the agreement.
Why is India important for New Zealand trade?
India is the world's most populous country and is expected to become a top-three global economy, offering major long-term demand growth.
