The feeling among MEPs on the European Parliament’s Committee on International Trade (INTA) is unanimous: the conclusion of negotiations for a free trade agreement (FTA) with New Zealand is very good news. MEPs had the opportunity to discuss this with Dora Correia, Director for Africa, Asia, Pacific at the European Commission’s DG Trade, on Wednesday 13 July.
For several years, part of the European Parliament has been calling for more ambitious agreements in the area of the environment, with the possibility of sanctions in the event of non-compliance with the chapters on sustainable development. Their wish has been granted with the EU-New Zealand trade agreement, which implements the European Commission’s new vision for trade and sustainable development (see EUROPE 12977/13).
Once the agreement is in force, trade sanctions can be applied to either partner if it does not comply with the Paris Agreement or the core International Labour Organization (ILO) conventions (forced labour, child labour, freedom of association and elimination of discrimination), which it has ratified.
The agreement also includes elements on the elimination of fossil fuel subsidies, but in a less binding way, as both parties only commit to work together on the objective of eliminating such subsidies.
On the content of the agreement, the Chair of the INTA Committee Bernd Lange (S&D, German) said he was “really astonished” by the provisions after reading the whole text. He called it “the most advanced, modern and progressive agreement worldwide”.
Most MEPs shared this view, praising the Commission’s work in the negotiations. “This is a great success both for the EU, New Zealand and for sustainable rules-based trade”, said Karin Karlsbro (Renew Europe, Swedish). The other groups said similar things, including the Greens/EFA, ECR and ID groups.
However, Anna Cavazzini (Greens/EFA, German) asked the Commission about the environmental impact of the agreement, especially with regard to increased trade: “Did you check if the agreement will lead to higher emissions due to agrifood exports?”
The answer is simple for the Commission, according to Dora Correia: “My colleagues tell me that greenhouse gas emissions coming from transport are actually quite negligible because transport is very efficient via cargo. What really impacts emissions is our choices as consumers”. She explained, for example, that with regard to the new beef quotas in the agreement, the focus was on pasture-fed beef, which reduced emissions. She added that European cattle are mostly fed with soya beans from the other side of the world.
The tariff quotas on New Zealand beef introduced by the agreement will allow Wellington to export up to 10,000 tonnes of beef to the EU at a reduced tariff, but these quotas only apply to pasture-fed cattle.
Agreement must be ratified quickly, says INTA Committee
Several MEPs called for the quick ratification of the agreement, if possible before the end of this electoral term, according to Bernd Lange. “It is important that at the European Parliament we do not slow down the process now”, stressed Daniel Caspary (EPP, German), the rapporteur on the New Zealand agreement.
Since it does not contain elements on investment, the agreement can be considered as non-mixed, and therefore of exclusive EU competence. It therefore does not need to be ratified by national and regional parliaments, which should facilitate the ratification process.
The incoming Czech Presidency of the EU Council has also indicated its willingness to move forward on trade agreements (see other news) and hopes to see the FTA with New Zealand quickly ratified. (Original version in French by Léa Marchal)