Sustainability is an important goal of the new trade agreement that the EU and New Zealand have negotiated since 2018 and finalized in 2022. It entered into force on May 1, 2024.
The agreement was published in the Official Journal of the European Union L/2024/866 on March 25, 2024 and entered into force on May 1, 2024. Read more about the changes and customs benefits.
“This is a new generation of trade deal, with both sides set to make real economic and environmental gains”, said Executive Vice-President and Commissioner for Trade, Valdis Dombrovskis in a press release. The goals of the 2015 Paris Climate Agreement (which include limiting global warming and greenhouse gas neutrality), as well as core labor rights must be adhered to by both parties. In case of serious violations, there is a possibility of trade sanctions. For the first time, an EU trade agreement also includes a separate chapter on sustainable food systems.
In addition to the ecological goals, the economic benefits are of particular interest to the member states of the European Union and New Zealand. For New Zealand, the EU is the third-largest trading partner. The agreement will allow European companies to save more than EUR 140 million in customs duties annually.
Customs duties for exports from the EU will be abolished upon entry into force. In the food sector, this applies, for example, to pigmeat, wine, and sparkling wine, chocolate, sugar confectionery, and cookies (current duty on all 5%). Tariffs will also be eliminated for motor vehicles, clothing, and textiles (currently up to 10%), or machinery, chemicals, pharmaceuticals (currently up to 5%).
In return, the EU will eliminate or significantly reduce its tariffs on most New Zealand goods. In the agricultural sector in particular, there is a phased dismantling of customs duties:
Tariff rate quotas are provided for sensitive products. The tariff rate quotas for meat from cattle, sheep and goats, dairy products, sweet corn and ethanol will increase every year.
In addition, geographical indications will be protected, for example, for wines (Rioja, Champagne, etc.), cheese (Comté, Feta, etc.) and other specialties (Lübecker Marzipan, etc.).
The software Origin & Preferences from AEB helps you to tap the benefits and realize the opportunities of free trade agreements.
Key facts on EU-NZ trade are listed by New Zealand's Foreign Affairs and Trade Department. The text of the rules of origin published after the negotiations reveals the following key points:
The software Origin & Preferences from AEB provides you with uncomplicated support. In the application, not only the EU’s free trade agreements are implemented, but also those of Switzerland. This is supported by the AEB data service in cooperation with renowned data providers.
The regulations on preference calculation in trade between the EU and New Zealand will be added as soon as the agreement has entered into force. In addition, the AEB software manages all the necessary proofs. This enables you to determine the preferential status of merchandise in a legally secure manner, save on customs duties, and benefit from competitive advantages.
