FREE TRADE AGREEMENT BETWEEN THE EUROPEAN UNION AND NEW ZEALAND

Chairperson: H.E. Mr José VALENCIA (Ecuador)

1.1.  The 113^th Session of the Committee on Regional Trade Agreements (hereinafter "CRTA" or the "Committee") was convened in Airgram _WTO/AIR/RTA/39/Rev.1 dated 6 June 2025.

1.2.  Under Agenda Item 7.2, the CRTA considered the Free Trade Agreement between the European Union and New Zealand, goods and services (hereinafter "FTA" or "the Agreement"). The Chair stated that the Factual Presentation had been prepared by the Secretariat on its own responsibility in full consultation with the Parties, in accordance with paragraph 7(b) of the Transparency Mechanism for Regional Trade Agreements (document _WT/L/671).

1.3.  The Agreement had entered into force on 1 May 2024. The Parties had notified the Agreement to the WTO on 9 April 2024 under Article XXIV:7(a) of the GATT 1994 and Article V:7(a) of the GATS as an agreement establishing a free trade area in goods and services (document _WT/REG484/N/1 and _S/C/N/1162). The text of the Agreement and the Annexes were available on the Parties' official websites and in the WTO RTA database. The Factual Presentation (document _WT/REG484/1/Rev.1) and the Questions and Replies (document _WT/REG484/2) had been distributed.

1.4.  The representatives of New Zealand and European Union jointly delivered the following statement, accompanied by a PowerPoint presentation (distributed as document _RD/RTA/67):

1.5.  The European Union and New Zealand have prepared the following joint statement on our Free Trade Agreement (FTA). First of all, I thank you very much to the Secretariat for the excellent Factual Presentation and also to Members who provided questions in advance. The Agreement was concluded in a record speed, within 4 years from the start of the negotiations, and was ratified by both Parties and entered into force on 1 May 2024. The Agreement establishes a free trade area in goods between the Parties within the meaning of Article XXIV(8)(b) of the GATT.

1.6.  New Zealand has longstanding historical, cultural, political and economic ties with Europe, including strong trade ties. We share support for the rules‑based trading system. These are the foundation for our modern relationship.

1.7.  The strength of our relationship is reflected in our modern, high quality, comprehensive and inclusive Agreement, which sets a precedent for sustainable and liberalising trade agreements. The total value of trade in goods and services was NZD 20.99 billion (or EUR 11 billion) in the year ending March 2025, an increase of 6% from the year ending March 2024.

1.8.  The Agreement includes market liberalisation for goods, services and investment as well as unprecedented sustainability outcomes and commitments to work together on trade and sustainable development.

1.9.  Tariff liberalisation is a key component of the FTA with 91% of New Zealand goods trade able to enter the EU duty‑free immediately following entry into force of the FTA, through tariff elimination or duty-free quotas. This rises to 97% after seven years. In addition, 100% of EU goods trade has been able to enter New Zealand duty free since entry into force of the FTA.

1.10.  Businesses and consumers can benefit from this tariff liberalisation on goods traded between the EU and New Zealand. This includes industrial inputs (vehicles and machinery), agricultural products (horticulture, dairy and meat) and other consumer goods such as pharmaceuticals, household appliance and furniture and cosmetics. Bilateral trade is expected to increase by 30% when the full liberalisation under the Agreement is reached.

1.11.  The FTA contains provisions on rules of origin and customs procedures which provide transparency and predictability for exporters and efficient clearance and release of goods, including the minimisation of administrative burden, for example via electronic submission and processing of documentation.

1.12.  The Agreement ensures that Geographical Indications are protected, as part of the provisions on intellectual property rights.

1.13.  The Technical Barriers to Trade (TBT) Chapter builds on the WTO TBT Agreement to increase transparency and cooperation in the development and adoption of technical regulations, standards and conformity assessment procedures. The Chapter encourages convergence towards and maximum use of relevant international standards, together with promoting cooperation between New Zealand and the EU, bilaterally and in international standard setting bodies.

1.14.  In addition, the TBT Chapter contains a marking and labelling article designed to deliver clarity and certainty to businesses in regard to these requirements, for example registration or certification of labels or supplementary labelling. The Chapter recognises the importance of cooperation, with a view to eliminating, reducing or avoiding technical barriers to trade, and facilitating trade, including via digital solutions. The Chapter also includes a dedicated annex on motor vehicles, making certification much less burdensome, including the recognition of EU type‑approval certificates.

1.15.  For New Zealand and European businesses, the FTA contains high quality rules and market access commitments that will help facilitate access and provide greater certainty and ensure that our exporters can compete on a comparable basis with other trading partners.

1.16.  Investment provisions in the FTA incorporate modern investment protection rules, as well as providing certainty and stability regarding market access for investors. This supports the growth and development of two‑way investment between the EU and New Zealand.

1.17.  The FTA contains new and improved access for education services, allowing New Zealand education providers to offer a range of services, including language and sports and recreation education services. This is the first time the EU has agreed to market access commitments in this area.

1.18.   The chapter includes commitments on the movement of natural persons for business purposes, including commitments to facilitate the processing of applications for entry and temporary stay. For those being transferred by their companies to perform particular roles (so called intra‑corporate transferees), there are also additional facilitating provisions with specific timeframes for consideration of properly completed applications and commitments to enable visa access for their partners and dependents. These rules support increased collaboration between New Zealand and European businesses including by addressing skills shortages and enabling the sharing of technical expertise.

1.19.  The FTA brings modern and transparent rules on digital trade, facilitating data flows while protecting our values, including ensuring a secure online environment for the consumers.

1.20.  The FTA includes groundbreaking commitments to promote important trade and sustainable development outcomes, including an indicative list on green goods and services.

1.21.  The FTA contains binding and enforceable labour and environment obligations, including to "effectively implement" ILO conventions, multilateral environment agreements, and the Paris Agreement.

1.22.  The Agreement also includes a first-of-its-kind cooperation Chapter on Sustainable Food Systems and Animal Welfare. The Parties will cooperate on issues spanning the economic, environmental, social, and cultural bases of the food system to improve sustainability, food security, and nutrition for future generations.

1.23.  The FTA has disciplines on fisheries subsidies and commitments to work together on the fossil fuel subsidy reform. These are the most ambitious provisions ever agreed by the EU in an FTA.

1.24.  The Trade and Sustainable Development Chapter includes, for the first time in an FTA for New Zealand and the EU, enforceable commitments on trade and gender equality to advance women's engagement in trade.

1.25.  The Trade and Sustainable Development Chapter also supports conservation objectives through commitments to combat illegal wildlife trade and illegal logging, prevent overfishing, and deter illegal, unreported and unregulated fishing.

1.26.  The FTA includes New Zealand's Te Tiriti o Waitangi/Treaty of Waitangi exception that ensures that nothing in the FTA would prevent the New Zealand Government from meeting its obligations to Māori.

1.27.  The FTA includes a Māori Trade and Economic Cooperation Chapter to advance engagement on trade and investment cooperation and initiatives. The Chapter identifies a number of cooperation areas to enhance the ability for Māori to access the benefits from the FTA, develop business links between Māori and EU enterprises (with a particular emphasis on SMEs), and to strengthen science, research and innovation connections. The FTA includes new language that will provide greater certainty in the Digital Chapter as to how the Government can regulate to promote and protect Māori interests in the digital space.

1.28.  The FTA contains provisions that are aimed at promoting greater engagement and participation from a broad cross‑section of society in the development and implementation of the Parties' trade policy. The Parties have each designated a Domestic Advisory Group to advise on issues covered by the FTA. Each Party is required to consider views or recommendations submitted by its Domestic Advisory Group on the implementation of this Agreement. A Civil Society Forum will also be established. Both fora include Māori (in the case of New Zealand), NGOs, business and employer organisations and trade unions.

1.29.  The Transparency Chapter will build on existing WTO commitments and complement more specific transparency rules in other chapters of the FTA. The provisions of this Chapter set standards and norms for the publication of laws, regulations and procedures relevant to matters covered by the FTA and for responding to public enquiries about them.

1.30.  These provisions also contain undertakings by the Parties to administer their laws, regulations and procedures relevant to matters covered by the FTA in an objective, impartial and reasonable manner and to have in place mechanisms for judicial review and appeal of administrative decisions.

1.31.  The vast majority of companies in both the EU and New Zealand are SMEs. The Agreement addresses their specific needs by ensuring access to information and ensuring cooperation in identifying ways for these companies to benefit from the opportunities offered by the Agreement.

1.32.  Turning to the key outcomes for New Zealand, the estimated tariff savings amount to NZD 100 million from day one, rising to NZD 110 million after seven years.

1.33.  The FTA will also open up valuable additional quota access for key products to New Zealand, including for beef and dairy.

1.34.  The FTA preserves the unique status of the Treaty of Waitangi and its importance to New Zealand. The EU agreed to the inclusion of a Treaty of Waitangi exception to ensure the NZ government can meet its obligations to Māori.

1.35.  On the key outcomes for the EU, while the EU will be expected to benefit from duty savings amounting to EUR 140 million a year, the broader signal passed by the conclusion of this FTA needs to be looked at from the broader perspective. Indeed, for the EU, concluding this Agreement was not only an important bilateral trade policy step with a like‑minded partner such as New Zealand. It was also an important message in favour of strengthening the rules-based trading system and an important step in the EU's engagement in the Indo-Pacific region, in line with the EU's Indo‑pacific Strategy of 2021.

1.36.  Furthermore, the sustainability provisions of the FTA are fully in line with the European Commission's Trade and Sustainable Development (TSD) review of 2022.

1.37.  Throughout the Agreement, both Parties acknowledge and highlight the importance of the multilateral trading system, including the World Trade Organization, in setting standards and providing a forum to cooperate on a range of trade policy issues. The Agreement includes numerous commitments to work together multilaterally across a range of trade policy issues.

1.38.  The overarching framework for further development of the New Zealand‑EU relationship is the Partnership Agreement on Relationship Cooperation (PARC), signed in 2016 and entered into force in 2022. This strengthens bilateral engagement, dialogue and cooperation on issues of mutual interest, including economic and trade matters, science and innovation, education and culture, migration, counterterrorism and judicial cooperation.

1.39.  In conclusion, we consider our modern, high quality, comprehensive and inclusive Agreement to be a strong base for further strengthening of longstanding historical, cultural, political and economic relationship, and we look forward to growing trade between our two economies. On the last slide, you will see a few useful links for further details of the FTA, and I would like to thank the delegations for their written questions submitted ahead of the meeting. Thank you.

1.40.  The representative of Chinese Taipei noted the following:

1.41.  First, we would like to thank the Chair for convening this session of the Committee meeting, and the Secretariat for its efforts in preparing the Factual Presentation. We would also like to express our particular appreciation to the European Union and New Zealand for their kind and detailed written replies. The information provided is very helpful and will be shared with Taipei. We sincerely hope that the implementation of this FTA will proceed successfully.

1.42.  The representative of Thailand noted the following:

1.43.  Thank you, Chair, for giving me the floor. My delegation would like to express our appreciation to the EU and New Zealand for their constructive presentations and for responding to our written questions, including the additional ones submitted after the deadline. Your responses have greatly assisted our understanding of the Agreement. We wish for the successful implementation of the Agreement. Thank you.

1.44.  The representative of Costa Rica delivered the following statement:

1.45.  Thank you very much, Chair. On behalf of the delegation of Costa Rica to the WTO, I would like to congratulate the European Union and New Zealand for their Factual Presentation and to thank them for the presentation. If you will allow me, I would like to make a short statement even though my delegation did not submit any questions.

1.46.  Both the European Union and New Zealand are key strategic trade and investment partners for Costa Rica. The EU is our second largest export destination, with goods such as medical devices, bananas, fresh pineapple and its juice, as well as coffee. Since the entry into force of the Association Agreement between Central America and the EU, our exports to the EU have grown by 13% on average each year. With regard to foreign direct investment (FDI), the EU is the second largest source of FDI, primarily in the manufacturing, services and real estate sectors.

1.47.  Meanwhile, we have a solid relationship with New Zealand, with growing and specialized trade in inter alia the medical and agri‑food sectors. Our relationship has been further consolidated by the recent conclusion of the negotiations on the Digital Economy Partnership Agreement (DEPA) and the signature of the Agreement on Climate Change, Trade and Sustainability (ACCTS). These two instruments will allow for the harmonization of rules on e-invoicing, digital consumer protection, cross-border data transfers, in addition to eliminating tariffs on 45 key products and establishing international standards for eco-labelling and reducing fossil fuel subsidies, respectively.

1.48.  I would like to highlight the unstinting support of both Members for the WTO and the multilateral trading system in their economic integration strategies. Given that we have so much common ground, it is a pleasure for Costa Rica to participate in joint initiatives with both Members on, for example, services domestic regulation, e‑commerce, trade and gender, MSMEs, trade and environmental sustainability, and fossil fuel subsidy reform, to name just a few. Costa Rica therefore considers that the agreement between the EU and New Zealand contributes enormously to the integration and strengthening of global value chains, green and digital trade, and competitiveness, and we would like to congratulate them on its entry into force.

1.49.  The Chair noted the consideration of the Free Trade Agreement between the European Union and New Zealand had allowed the Committee to clarify a number of questions and concluded oral discussion of the RTA in accordance with paragraph 11 of the Transparency Mechanism. Any delegations wishing to ask follow-up questions were invited to forward submissions in writing to the Secretariat by 24 June 2025 and Parties were asked to submit replies in writing by no later than 8 July 2025. In accordance with paragraph 13 of the Transparency Mechanism all written submissions, as well as minutes of the meeting, would be circulated promptly, in all WTO official languages, and made available in the WTO database on RTAs.

1.50.  The Committee took note of the comments made.

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