The eighth round of negotiations for a free trade agreement between the EU and New Zealand, which took place from 8 to 22 June, provided the opportunity for in-depth discussions covering all areas of the future agreement, according to a European Commission report published on Thursday 2 July. However, some chapters still seem to be too far behind to envisage a conclusion of the talks by September (see EUROPE 12482/22).
The discussions, which took place by videoconference, faltered in particular on market access issues. The Commission’s report notes that “the customs duties imposed by New Zealand remain the most sensitive issue in the text”.
A classic point of tension in the EU’s trade negotiations, access to agricultural products, in particular, lived up to its usual reputation in the discussions with New Zealand.
Negotiations also ran into further difficulties in early June after the European market offer for New Zealand agricultural products was leaked to the local press and heavily criticised, forcing Trade Minister David Parker to step up to the plate. He told EU Trade Commissioner Phil Hogan that the offer was too impractical for Wellington to consider finalising the talks quickly.
Talks made even more complicated by the Brexit, with Wellington being particularly hostile to the distribution of tariff quotas between the EU and the UK (see EUROPE 12370/7, 12203/23, 12266/31).
The long list of geographical indications that the Union wishes to see protected in New Zealand has also been poorly received. In the last round, however, New Zealand initiated discussions on this subject for the first time and submitted a text in response to the European proposal.
Finally, according to the New Zealand press, unexpected difficulties were encountered in the discussions on the chapter on sustainable development, an area “where the EU is traditionally seen as a leader”. The Wellington government has also expressed disappointment at the lack of progressiveness in the EU on environmental issues such as fisheries reform and fossil fuel subsidies.
As for Europe, it is stuck on the question of New Zealand’s ratification of two fundamental ILO conventions (C087 and C138), which remains an “outstanding issue”, according to the report.
In the meantime, both parties have highlighted good progress on a consolidated text and confirmed that they are aiming for binding and robust dispute settlement, the report says.
New Zealand also suggested that, at the conclusion of the negotiations, the two parties should issue two declarations, one on trade in essential goods in relation to Covid-19, the other on environmental goods and services.
As a result, the chances of sealing this agreement before the general elections on 19 September are slim, a European source admitted.
The optimism of the parties, who wanted to see the agreement sealed by the end of 2019, has broadly ended in disappointment (see EUROPE 12180/5).
Read the report: https://bit.ly/2Bpzehs (Original version in French by Hermine Donceel)