Free trade
First green trade agreement: New Zealand – EU
Sustainability is an important goal of the new trade agreement that the EU and New Zealand have negotiated since June 2018 and finalized on June 30, 2022.
01.08.2022
As described in the press release of June 30, 2022, the agreement will now undergo a legal revision, be translated into all official languages of the EU, and then be published. Ratification by the EU and New Zealand will follow before the agreement enters into force.
Green trade agreement: Implementing sustainability
“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.
EU and New Zealand: Customs benefits at a glance
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. Trade in goods between the two partners amounted to almost EUR 7.8 billion in 2021. 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. Tariff rate quotas are provided for sensitive products.
In addition, geographical indications will be protected, for example, for wines (Rioja, Champagne, etc.), cheese (Comté, Feta, etc.) and other specialties (Lübecker Marzipan, etc.).
Seize the full potential of free trade
The software Origin & Preferences from AEB helps you to tap the benefits and realize the opportunities of free trade agreements.
Sneak preview: Key data of the trade agreement before final publication
The Austrian Federal Economic Chamber already lists the benefits of the trade agreement with New Zealand as well as various sources.
The text of the rules of origin published after the negotiations reveals the following key points:
- Preference can be claimed not only on the basis of a declaration of origin, but also on the basis of the certainty of the importer.
- For exports from the EU, the registered exporter (REX) regime is applied.
- As in other recent agreements, declarations of origin can also be issued for a period of up to twelve months.
- Average prices can probably be used for primary materials.
IT-supported assistance for working with trade agreements
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.
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