NZ GVT Free Trade with EU, Horizon

On Jul. 4, NZ GVT reported about free trade agreement and Horizon.

  • NZ GVT said that it will sign, in Jul. 2023, the New Zealand (NZ) and European Union (EU) free trade agreement as well as the Horizon Europe Association agreement.
  • Follows NZ GVT Dec. 21 updated re the Horizon Europe negotiations, see #157331.
  • Free Trade Agreement
  • It said this long-awaited deal will unlock access to the world’s third biggest market.
  • Deliver immediate tariff savings on New Zealand exports to EU of around NZD 100mn per year when entering force; more than any past New Zealand free trade agreement.
  • Important milestone towards high-quality, historic free trade agreement entering force.
  • Horizon Europe
  • In addition, said that associating to Horizon Europe will provide new opportunities.
  • New opportunities for country's scientists to collaborate with European partners on research to address major global challenges such as climate change, energy, health.
  • Jul. 9, 2023 Three Agreements Signed
  • On Jul. 9, 2023, EU CMSN reported that EU CMSN as well as New Zealand signed the association agreement on the participation of New Zealand to Horizon Europe.
  • Marks first association with a close partner that is not geographically close to Europe; a completely new approach whereby the EU is strengthening even more its ties with trusted partners that have a solid scientific base and a robust research track record.
  • Discussed status of negotiations/discussions re other nations joining Horizon Europe.
  • On same day, EU CNCL said EU and New Zealand may apply association agreement provisionally in accordance with their respective internal procedures and legislation.
  • In addition, EU CNCL said provisional application will begin on the date on which both parties have notified each other of the completion of their internal procedures.
  • On same day, EU CMSN said EU and New Zealand signed free trade agreement (FTA); FTA will cut about EUR 140mn/year in duties for EU firms from 1st year of application.
  • In addition, it said the FTA is now sent to EP for its consent; after completion of the ratification process in both the EU as well as New Zealand, the FTA enters into force.
  • On same day, EU CMSN issued press statement by EU CMSN President von der Leyen; this statement discusses features of the FTA including, that for the very first time in a trade deal, EU CMSN has included commitments on the Paris climate agreement.
  • Reflects shared net-zero goals; facilitates flow of data between EU and New Zealand.
  • Statement also discusses signing of association agreement above re Horizon Europe; it also discusses entry into force of the agreement between New Zealand and EUROPOL.
  • Nov. 2023 EU Ratification
  • On Nov. 27, 2023, EU CNCL adopted a decision on the conclusion of a free trade agreement (hereafter, the FTA) between the European Union (EU) and New Zealand.
  • This decision clears the path, on the EU side, for the entry into force of the agreement.
  • EU CNCL discussed FTA's key features i.e. the FTA will prevent unjustified data localization requirements and maintain high standards of personal data protection.
  • Reduce compliance requirement and procedures to allow for the quicker flow of goods.
  • Entry into force will take place on first day of second month after both sides confirm completion of legal requirements, procedures, or on other date as agreed by parties.
  • On the same day, EU CMSN commented on FTA; FTA is first to integrate EU's new approach to trade and sustainable investment (TSD), as further discussed in #141327.
  • EU CMSN said before FTA can enter into force, New Zealand will need to complete its ratification procedure - expects this to happen between Jan. 1, 2024 - Jun. 30, 2024.
  • On the same day, EU CMSN published opening remarks by Executive Vice-President Dombrovskis at the Trade Foreign Affairs Council meeting; first 1st time in an EU free trade agreement, FTA has dedicated sustainable food systems chapter, dedicated trade and gender equality article, specific provision on trade and fossil fuel subsidies reform.
  • He said many of the FTA's innovative sustainability features are a first of their kind.
  • Plus, discussed preparations for 13th World Trade Organization (WTO) Ministerial Conference (#191821); discussions so far are promising, but more work is needed.
  • In Jan. 2024, NZ GVT published the European Union free trade agreement legislation amendment bill, re the EU/NZ free trade agreement detailed above, see #199061.
  • Mar. 19, 2024 Legislative Amendments
  • On Mar. 19, 2024, NZ GVT reported that NZ PRL is set to complete the final legislative processes required to bring the NZ-EU FTA into force months earlier than expected.
  • The progress of the legislative amendments involved is covered in detail in #199061.
  • All parties agreed to complete the legislative process by end-Mar. 2024, meaning the FTA can enter into force in May 2024, instead of Jul./Aug. 2024, as originally planned.
  • Once in force, over 70% of New Zealand’s exports will be covered by the FTA network.
  • Mar. 25, 2024 Royal Assent
  • On Mar. 25, 2024, NZ GVT said the European Union free trade agreement legislation amendment act received Royal Assent, enabling its entry into force on May 1, 2024.
  • Agreement is set to increase NZ's total exports to the EU by NZ 1.8bn annually.

Entity Types Corp; IA; Inv Co
Reference PR, Act 2024 No 10, 3/25/2024; PR 3/19/2024; Mt, Sp SPEECH/23/6091, PR IP/23/6056, 11/27/2023; PR 7/9/2023; PR 7/4/2023; ESG;
Functions Compliance; Environment; Financial; Legal; Privacy; Research; Social; Tax; Technology; Treasury
Countries European Union; New Zealand; Cross-Border
Products Commodities; Corporate; Fund Mgt
Regions AP
Rule Type Final
Rule Date 7/4/2023
Effective Date 5/1/2024
Rule Id 178389
Linked to Rule :157331
Reg. Last Update 3/25/2024
Report Section International

Last substantive update on 03/28/2024