WELLINGTON, March 19 (Xinhua) -- New Zealand is saving an additional 46 million NZ dollars (27.81 million U.S. dollars) of tariff in the European Union (EU) market this season for Kiwifruit and onion exporters, by ratifying the New Zealand-EU Free Trade Agreement (NZ-EU FTA) months earlier than expected.

The New Zealand Parliament is set, this week, to complete the final legislative processes required to bring the NZ-EU FTA into force months earlier than expected, Minister for Trade and Agriculture Todd McClay said on Tuesday.

This agreement offers significant benefits for the New Zealand economy, and an earlier entry into force will see tariff savings of 43 million NZ dollars (26 million U.S. dollars) for Kiwifruit exporters, and 3 million NZ dollars (1.81 million U.S. dollars) for onion exporters this season, McClay said.

All parties involved in the committee process agreed to complete the legislative process by the end of March. This will mean the agreement can enter into force on the first day of the second month, May 1, instead of July or August, which would have excluded much of this year's Kiwifruit and onion exports, he said.

The EU, which is New Zealand's fourth-largest trade partner, has completed its ratification processes, and the agreement has been signed off by the European Parliament and Council.

"The FTA will level the playing field for Kiwi businesses, increase the resilience of our economy, and contribute to the government's target of doubling our export value in 10 years," McClay said, adding that once in force, over 70 percent of New Zealand's exports will be covered by the FTA network, meaning free and fairer market access for New Zealand exporters.

Other benefits of the deal include duties removed on 91 percent of New Zealand's goods exports to the EU from entry into force, rising to 97 percent after seven years, the minister said, adding that tariff savings will reach 100 million NZ dollars (60.44 million U.S. dollars) per year on New Zealand exports to the EU from day one.

Negotiations on the NZ-EU FTA concluded on June 30, 2022, with the agreement signed on July 9, 2023 in Brussels. Enditem

Related

Go to Forum >>0 Comment(s)