Factual Presentation

Free Trade Agreement between the European Union and New Zealand
(Goods and Services)

Report by the Secretariat

Revision*

This report, prepared for the consideration of the Free Trade Agreement between the European Union and New Zealand, goods and services has been drawn up by the WTO Secretariat on its own responsibility and in full consultation with the Parties. The factual presentation reproduces as closely as possible the terminology used in the Agreement and in the comments provided and does not imply official endorsement or acceptance by the Secretariat of such terminology. The report has been drawn up in accordance with the rules and procedures contained in the Decision for a Transparency Mechanism for Regional Trade Agreements (_WT/L/671) and thus does not imply any value judgement by the Secretariat regarding the contents of the Agreement.

Any technical questions arising from this report may be addressed to Mr. Alberto Osnago (tel: +41 22 739 6969 / alberto.osnago@wto.org). Any statistical questions arising from this report may be addressed to Rowena Cabos (tel: +41 22 739 5185 / rowena.cabos@wto.org) or Pamela Bayona (tel: +41 22 739 5529 / pamela.bayona@wto.org).

Table of Contents

Executive summary.................................................................................................. 5

1   Trade Environment............................................................................................ 6

1.1   Global trade............................................................................................................. 6

1.2   Bilateral trade.......................................................................................................... 9

2   Characteristic Elements of the Agreement............................................ 12

2.1   Background information......................................................................................... 12

2.2   Structure of the Agreement.................................................................................... 13

3   Provisions on trade in Goods.................................................................... 13

3.1   Import duties and charges, and quantitative restrictions......................................... 13

3.1.1   General provisions.............................................................................................. 13

3.1.2   Liberalization of trade and tariff lines.................................................................. 14

3.1.3   Liberalization schedule........................................................................................ 14

3.1.3.1   European Union............................................................................................... 14

3.1.3.2   New Zealand.................................................................................................... 16

3.1.4   Tariff rate quotas................................................................................................ 17

3.2   Rules of origin....................................................................................................... 17

3.3   Export duties and charges, and quantitative restrictions......................................... 17

3.4   Regulatory provisions on trade in goods................................................................. 18

3.4.1   Standards........................................................................................................... 18

3.4.1.1   Sanitary and phytosanitary measures.............................................................. 18

3.4.1.2   Technical barriers to trade............................................................................... 18

3.4.2   Safeguard mechanisms....................................................................................... 20

3.4.2.1   Global safeguards............................................................................................ 20

3.4.2.2   Bilateral safeguards......................................................................................... 20

3.4.3   Anti-dumping and countervailing measures......................................................... 20

3.4.4   Subsidies and state-aid....................................................................................... 20

3.4.5   Customs-related procedures............................................................................... 21

3.4.6   Other regulations................................................................................................ 22

3.4.6.1   Animal welfare................................................................................................. 22

4   Provisions on Trade in Services................................................................ 22

4.1   Scope and definitions............................................................................................. 22

4.2   Denial of benefits................................................................................................... 22

4.3   General provisions on trade in services.................................................................. 23

4.3.1   Market access..................................................................................................... 23

4.3.2   National treatment and MFN............................................................................... 23

4.3.3   Commercial (local) presence............................................................................... 23

4.3.4   Performance requirements.................................................................................. 23

4.3.5   Senior Management and Boards of Directors....................................................... 23

4.3.6   Movement of natural persons.............................................................................. 23

4.4   Liberalization commitments.................................................................................... 24

4.4.1   European Union.................................................................................................. 24

4.4.1.1   MFN and horizontal commitments.................................................................... 24

4.4.1.2   Sector specific commitments............................................................................ 24

4.4.2   New Zealand....................................................................................................... 28

4.4.2.1   MFN and horizontal commitments.................................................................... 28

4.4.2.2   Sector specific commitments............................................................................ 29

4.5   Regulatory provisions............................................................................................ 32

4.5.1   Domestic regulation............................................................................................ 32

4.5.2   Recognition......................................................................................................... 33

4.5.3   Subsidies............................................................................................................ 33

4.5.4   Safeguards......................................................................................................... 33

4.6   Sector specific provisions on trade in services........................................................ 33

4.6.1   Delivery services................................................................................................. 33

4.6.2   Telecommunications services.............................................................................. 33

4.6.3   Financial services................................................................................................ 34

4.6.4   International maritime transport services............................................................ 34

5   General Provisions of the Agreement...................................................... 34

5.1   Transparency......................................................................................................... 34

5.2   Current payments and capital movements.............................................................. 34

5.3   Exceptions............................................................................................................. 35

5.3.1   General exceptions............................................................................................. 35

5.3.2   Security exceptions............................................................................................. 35

5.3.3   Safeguards for balance of payments reasons....................................................... 35

5.3.4   Taxation............................................................................................................. 35

5.3.5   Treaty of Waitangi exception............................................................................... 35

5.4   Accession and withdrawal...................................................................................... 36

5.5   Institutional framework.......................................................................................... 36

5.6   Dispute settlement................................................................................................. 36

5.7   Relationship with other agreements concluded by the parties................................. 37

5.8   Government procurement...................................................................................... 39

5.9   Intellectual property rights..................................................................................... 40

5.10   Competition......................................................................................................... 41

5.11   State-owned enterprises...................................................................................... 41

5.12   Trade and sustainable development..................................................................... 42

5.13   Digital trade......................................................................................................... 42

5.14   Small and medium-sized enterprises.................................................................... 43

5.15   Gender................................................................................................................ 43

5.16   Other................................................................................................................... 43

5.16.1   Sustainable food systems.................................................................................. 43

5.16.2   Good regulatory practice and Regulatory Cooperation........................................ 44

5.16.3   Māori trade and economic cooperation.............................................................. 44

5.16.4   Energy and raw materials................................................................................. 44

Annex 1...................................................................................................................... 46

Annex 2...................................................................................................................... 52