The deal has eliminated import duties on exports of key EU agricultural products, such as pork, wine and sparkling wine, chocolate, sweets, and biscuits.
The agreement takes into account the interests of producers of sensitive agricultural products such as dairy, beef, sheep meat, ethanol, and sweet corn from the EU, the European Commission emphasizes. There will be no liberalization of trade in these sectors. Instead, the agreement will only allow limited amounts of duty-free imports or imports at reduced rates from New Zealand through so-called tariff quotas.
Commission President Ursula von der Leyen said the agreement will create great opportunities for EU companies. Furthermore, the free trade agreement protects the entire list of EU wines and distilled spirits (nearly 2,000 names), and 163 of the most renowned products with geographical indications remain protected in New Zealand, including cheeses, ham, and olives.
According to the European Commission, the agreement will deliver an annual tariff reduction of about 140 million euros to companies in all economic sectors. It is expected that bilateral trade will increase by as much as 30% within ten years. EU investments in New Zealand could increase by as much as 80%.
Additionally, the agreement includes sustainability commitments such as compliance with the Paris Agreement and fundamental labor rights.