Once the Council gives its nod, the EU and New Zealand can sign the agreement and it can be sent to the European Parliament for its consent. Following approval, the deal can enter into force.

EU investment into New Zealand has a potential to grow by up to 80 per cent, the EU said in a release. The deal can cut some €140 million a year in duties for EU companies from the first year of application.

The agreement will provide new opportunities for businesses by eliminating all tariffs on EU exports to New Zealand; opening the New Zealand services market in key sectors such as financial services, telecommunications, maritime transport and delivery services; ensuring non-discriminatory treatment to EU investors in New Zealand and vice versa; and improving access for EU companies to New Zealand government procurement contracts for goods, services, works and works concessions.

It is also expected to facilitate data flows, predictable and transparent rules for digital trade and secure online environment for consumers; prevent unjustified data localisation requirements and maintain high standards of personal data protection; helping small businesses export more through a dedicated chapter on small and medium enterprises; and significantly reducing compliance requirements and procedures to allow for quicker flow of goods.

EU farmers will have much better opportunities to sell their produce in New Zealand immediately upon application of the agreement. Tariffs will be eliminated as of day one on key EU exports.

Negotiations for such an agreement started in June 2018.

Fibre2Fashion News Desk (DS)