New Zealand-EU free trade pact to take effect May 1st

New Zealand announced on Monday that a free trade agreement with the European Union (EU) will become effective on May 1, following ratification by the country’s parliament, as per a Reuters report.

Trade and Agriculture Minister Todd McClay stated in a release that New Zealand had formally notified the European Union of its ratification earlier that day.

The agreement, which was signed by Wellington and Brussels in July 2023, had been ratified by the European Parliament in November of the same year.

New Zealand anticipates benefits for its beef, lamb, butter, and cheese industries through the elimination of tariffs, as well as for other exports such as its renowned kiwi fruit.

Likewise, the European Union will experience lifted tariffs on exports including clothing, chemicals, pharmaceuticals, cars, wine, and confectionery.

Government data indicates that the EU is New Zealand’s fourth-largest trading partner, with bilateral goods and services trade valued at NZ$20.2 billion ($12.10 billion) in 2022.