The EU and New Zealand share a very special relationship. I call it "being very close, from very far away".
We are not close neighbours in terms of geography.
But we are close in almost every other way – in terms of politics, culture and values. We are dynamic exporting economies. We are strong proponents of meaningful climate action.
These similarities matter a great deal in trade relations - especially in a world characterised by growing fragmentation and geopolitical uncertainty.
So with this in mind, today's signature of our Free Trade Agreement represents an important step forward.
First: it's an important step forward for our respective trade agendas.
This deal presents significant opportunity for both sides:
- We estimate that there is potential to increase bilateral trade by 30%.
- New Zealand exporters will gain increased access to the EU single market, offering a range of possibilities in a dynamic, attractive, reliable and predictable economic environment.
- EU investments in New Zealand could grow by up to 80%, creating jobs and growth for New Zealand's economy.
- We believe our exports to New Zealand could increase by up to €4.5 billion per year.
- And we expect that by removing tariffs, we will save EU businesses around €140 million per year.
Second, this agreement is a true asset for our rural areas, and for our food and drink producers. It will act as a real stimulus for our rural economies. Farmers on both sides will have improved market access.
For instance, tariffs will be eliminated from day one on key EU agricultural exports, such as pigmeat, wine and sparkling wine, chocolate, sugar confectionery, and biscuits. The EU will grant tariff-free access to key New Zealand agricultural products, such as wine, apples, onions and high-quality honey.
Over 2,000 high-quality EU agri-food products will be protected. This matters, because we share a common understanding that Geographical Indications are rural intellectual property, and therefore important drivers of rural prosperity and job creation. The EU will offer the same protection for New Zealand products, for example some of your wonderful and iconic wines.
Of course, there are always sensitivities around agriculture. So, appropriate protections are built into the deal. On the EU side, sensitivities concerning dairy products, beef and sheep meat, ethanol and sweetcorn are fully taken into account, whilst still giving commercially meaningful market access to New Zealand producers.
Third, I believe this agreement shows that trade relationships can make a positive difference to our climate and environment.
We are both advocates of greening trade. Now, we are putting our money where our mouth is, with a state-of-the-art green trade deal.
It contains the most ambitious sustainability commitments ever included in a free trade agreement.
Let me give you a flavour of just some of its innovative features:
- The Paris climate commitments are built in as an essential element.
- We have agreed on binding provisions to promote core labour rights.
- We have agreed dedicated chapters or provisions on:
- sustainable food systems;
- trade and gender equality; and
- trade and fossil fuel subsidies reform.
All these items are the first of their kind for the EU.
And we have committed to liberalised trade in green goods and services from the first day of application of this agreement, which will support the green transformations of our economies.
This agreement also represents an important step forward for how trade can contribute to the digital transition:
- It has state-of-the-art rules on digital trade, including on the treatment of personal data.
- There are ambitious rules governing data flows. This is crucial for a growing but geopolitically sensitive economic sector.
Finally, today's signature showcases our commitment to widening our trade networks with trusted partners. We already have the deepest and widest network of global trade agreements of any global player.
We recently concluded talks with Kenya and we are making good progress in talks with Australia.
And we have a lot more to do: we intend to grow this network to boost our economic resilience and security.
To conclude: ambitious trade deals like this one, with reliable and like-minded partners, are more valuable than ever. They bring us closer to our partners, driving opportunity while providing a solid platform for cooperation, including on economic security and multilateral reform.
So let me once again offer my sincere personal thanks to Minister O'Connor – a tough but fair negotiator – and our chief negotiators Peter Berz and Vangelis Vitalis and our teams. They invested much time and energy to arrive at this balanced deal. And I hope that we can swiftly complete ratification in both New Zealand and the EU and let the agreement enter into force as early as possible.
Although we remain at different ends of the world, we are now moving closer than ever together.
On this note, I am happy to conclude with a suitable Maori saying: "Waiho i te toipoto, kaua i te toiroa". Which means: "Let us keep close together, not far apart."
