New Zealand has negotiated a free trade agreement with the EU worth an immediate NZ$20 million in tariff reductions to its seafood industry.
The deal, which will come into force in the first quarter of 2024, will considerably increase the country’s income from seafood exports, said Seafood New Zealand Chief Executive, Dr Jeremy Helson.
“New Zealand seafood exports were forecast to rise 8 per cent to $2.1 billion for the year just ended, and by a further 2 per cent by 30 June next year, driven by a recovery in demand and high prices due to the reopening of the food service industry after Covid-19,” he said.
“The impact of this deal will be felt across the sector, from the many small family-run fishing businesses to the larger companies that are major employers in our regions.”
From day one, 99.5% will be tariff-free, rising to 99.9% within five years, and 100% percent within seven years, with tariff savings of NZ$19.6 million per annum.
Helson said the agreement has been keenly awaited by the commercial seafood sector. When it comes into force it will have been more than eight years since negotiations started.
“New Zealand relies on free trade agreements to compete with goods from other global exporters. The existing tariffs, compounded by several very tough years of pandemic-related restrictions on operation and trade, have put a lot of pressure on this hard-working sector,” he said.
The signing of the FTA with the European Union follows the new FTA with the UK that came into force on 31 May 2023. Under the UK-NZ FTA, 45% of New Zealand’s fish and seafood now enters the UK tax-free. Of the remaining, 99.5% will enter duty free within three years, and 100% within seven years.
