NZ, EU agree to start talks on free-trade agreement

NZ, EU agree to start talks on free-trade agreement

By Tina Morrison

Oct. 30 (BusinessDesk) - New Zealand and the European Union agreed to start talks on a free-trade agreement, in an attempt to boost trade and investment.

New Zealand Prime Minister John Key, European Commission President Jean-Claude Juncker and European Council President Donald Tusk agreed to start discussions on the next steps required to formally launch FTA negotiations, including the scope and the overall approach, according to a statement.

The initiative comes after the EU this month revised its Trade Policy Strategy, setting an increased focus on the Asia-Pacific region and FTA negotiations with New Zealand, Australia, the Philippines and Indonesia. New Zealand's government is focused on securing more free-trade agreements to give the small country access to big international markets.

"These agreements are part of the government's wider plan to diversify the economy by building strong trade, investment and economic ties around the world," Key said. "We look forward to working with the EU and its member states on next steps and to starting formal negotiations as soon as possible."

New Zealand exported $5.10 billion of goods to the EU in the year through September, of its total merchandise exports of $49.13 billion, according to Statistics New Zealand data released this week. It imported $9.21 billion from the region, from total imports of $52.37 billion, the agency said.

The EU is New Zealand's second-largest investment source, and its largest research and development partner, Key said.

Both the EU and New Zealand require further approvals to obtain the mandates required to begin negotiations, including from the New Zealand cabinet.

(BusinessDesk)

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