The EU and New Zealand have been linked since Wednesday by a new, far-reaching free trade agreement. The agreements, which entered into force on May 1, provide for the almost complete abolition of tariffs. The farmers were taken into account.
Taxes for EU companies are expected to be reduced by around €140 million annually. Overall, bilateral trade is expected to grow by as much as 30 percent within a decade.
Exception for agriculture
EU exports to the south-west Pacific country are expected to increase by up to €4.5 billion annually. To take into account the interests of European agriculture, certain dairy products, beef and sheep meat, ethanol and sweet corn, among others, were excluded from trade liberalization. Instead, according to the Commission, only limited amounts of duty-free or lower duty imports from New Zealand are allowed through so-called tariff rate quotas.
For the first time, a new approach to sustainable development will also be implemented. It even allows for sanctions in the event of serious violations of core labor law principles or climate policy obligations under the Paris Agreement.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
