EU and New Zealand conclude a trade agreement

• EU and New Zealand conclude a trade agreement covering trade and investment.
• Agreement will eliminate nearly all tariffs on EU exports to New Zealand.
•  Trade deal is the first Brussels has reached in three years, following resistance from member states to reductions in trade barrier reductions

A trade agreement between the EU and New Zealand has been reached, providing a boost to the global economic system.

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Thursday, Jacinda Ardern, the prime minister of New Zealand, travelled to Brussels to finalise the agreement with Ursula von der Leyen, the president of the European Commission.

The agreement, covering trade and investment, is the first that Brussels has reached in three years, following resistance from numerous member states to trade barrier reductions.

The agreement will eliminate nearly all tariffs on EU exports to New Zealand and increase access to the EU market for products from New Zealand’s meat and dairy industries.

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Agricultural product haggling dominated four years of negotiations and nearly derailed them. Wellington has eliminated farm subsidies and seeks new markets for its meat, lamb, butter, and milk powder at competitive prices.

Farmers in New Zealand must stop using EU-protected names such as feta and Parmesan cheese.

In recent years, the EU has reached agreements with Mercosur, the South American commercial organisation, and Mexico and concluded negotiations with Chile. Prior to ratifying the Mercosur agreement, however, a number of states are demanding further safeguards for Amazonian forests.

Multiple nations have yet to ratify an agreement with Canada, which entered provisional force in 2017. Last Monday, fifteen EU member states demanded that Valdis Dombrovskis, the EU’s trade commissioner, sign more deals.