During the visit of New Zealand’s new prime minister, Bill English, to Brussels on Tuesday 10 January, the EU and New Zealand confirmed that they intend to launch talks “as soon as possible” in 2017 for a bilateral free trade agreement.
“At the Commission, we are very eager to conclude a trade agreement with New Zealand. It is difficult inside Europe, it is difficult on the global scene. Nevertheless, we hope to be able to make the necessary progress as fast as we can to overcome the remaining difficulties”, European Commission President Jean-Claude Juncker stated at the end of a meeting with English.
“On the European side, we hope to be able to launch the negotiations this year, once the preparatory work has been done”, European Council President Donald Tusk stated, after a meeting with English earlier in the day.
“We are natural partners in an uncertain and changing international environment. Our economic ties are already strong but we think we can make them stronger through a solid free trade agreement that will create jobs and growth. We have confirmed our intention to launch these negotiations as soon as possible”, English said, alongside Juncker. “The Commission said it was ready to negotiate the trade agreements despite the difficulties that persist”, he added.
“Negotiating an agreement like this normally needs five to ten years. But I think that two to three years should be enough. We have very similar systems. We are friends and allies, the EU is New Zealand’s second biggest trading partner, and our trade exceeds €8 billion. I am confident that this can be done in a shorter time”, Juncker also said.
In addition, English announced that the partnership and cooperation agreement between the EU and New Zealand – signed on 5 October 2016 and covering economic cooperation, political dialogue, science and innovation, culture and education, migration, counter-terrorism and cybercrime, and legal cooperation (see EUROPE 11640) – would enter into force this Wednesday.
The parties also discussed Brexit. “We have confirmed our intention to work constructively with the EU and the UK throughout this process”, English stated. As to the question, raised by the press, of whether New Zealand would obtain a better partnership agreement with a UK totally outside the EU, Juncker beamed, and pulling the carpet from under his guest’s feet, immediately replied “no!”
The EU and New Zealand began a process at the end of 2015 with a view to free trade negotiations – the preparations for which started last February (see EUROPE 11491).
According to figures from the Commission bilateral trade in goods stood at €8.1 billion in 2015 (including €4.6 billion in exports for the EU) and trade in services rose to €3.5 billion in 2014 (including €2.2 billion in exports for the EU). At the end of 2014, the EU’s foreign direct investment (FDI) stock in New Zealand stood at €7.2 billion, while that of New Zealand in the EU was €3.3 billion. (Original version in French by Emmanuel Hagry)