In an important move for New Zealand's agricultural sector, Trade Minister Todd McClay has confirmed the commencement of negotiations with the European Union for a free trade agreement, set to begin on May 1. This development comes as a result of persistent efforts to secure a deal that promises substantial benefits for the country's exporters.
McClay highlighted the importance of this negotiation, stating, "The EU is our third largest trading partner with two-way trade worth more than $20 billion." He further emphasized the potential for growth, particularly in the agricultural sector, which stands to gain significantly from reduced tariffs and improved market access.
"We will notify the EU that on May 1 the tariff savings kick in, which for kiwifruit and onion growers and a few others is important because their goods are on their way to that market right now."
The initiation of talks marks a pivotal moment for New Zealand, with McClay expressing optimism about the positive impact on the economy. "This FTA is an opportunity to add an additional $1.4 billion to $2 billion to our economy," he remarked, underscoring the economic significance of the agreement.
As negotiations proceed, New Zealand's agricultural community watches closely, hopeful for a deal that will enhance their competitive edge in the European market. The May Day start signifies a new chapter in New Zealand-EU relations, with potential to reshape trade dynamics and bolster economic ties.
Source: farmersweekly.co.nz