The new Trade Agreement between the European Union and New Zealand, which will promote a closer economic relationship between the two parties, generating significant economic opportunities for businesses and consumers, came into effect last May 1st, 2024.
According to an impact assessment on the Agreement, trade between New Zealand and the EU is expected to increase by 30%, with annual exports from the EU estimated to reach up to 4.5 billion euros.
As a preamble, we consider it relevant to anticipate the benefits and the main novelties outlined by this Agreement regarding customs matters:
- A national treatment on internal taxation and regulation is established for goods from each of the Parties through a system of phased reduction and/or total elimination of customs duties on goods originating from the Parties.
- Customs duties on imports into the EU of pork, fresh fish, wine and sparkling wines, and wood products originating from New Zealand, are completely eliminated, while customs duties on beef and butter and other milk fats are gradually reduced.
- Customs duties on imports into New Zealand of pork and sheep meat, hams and cuts of ham, wine and sparkling wines, confectionery and biscuits originating from the EU are completely eliminated, while customs duties on certain alcoholic beverages such as rum and aluminum pipe fittings are gradually reduced.
- Preferential tariff treatment is granted to an originating goods of the Parties, establishing the following as valid proofs of origin:
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- A statement on origin that the product is originating made out by the exporter on an invoice or on any other document that describes the originating product in sufficient detail to enable its identification through the registered exporter REX number
- The importer’s knowledge that the product is originating, based on information demonstrating that the product is originating.
- It is ensured that sanitary and phytosanitary measures will not create unnecessary obstacles, promoting electronic certification and exempting the submission of food safety certification in certain cases.
- Traditional products from both Parties, such as wines with designated origin and cheeses with geographical indications, will be specially protected.
- Progressive liberalization of trade in the services sector is established, improving companies’ access to public contracts in each Party.
- Free movement of capital and payments or transfers is allowed to liberalize investments and other transactions.
- Cross-border data flow is guaranteed to facilitate trade in the digital economy, allowing each Party to establish its own requirements in this regard and prohibiting the imposition of any customs duties on electronic data transmissions between individuals of the Parties.
- It commits to including best practices in electronic invoicing and digital procurement systems to support interoperability and digital trade.
How can we assist you?
We recommend that operators conduct a study of their trade relations with New Zealand and the origin of the products traded, to take advantage of the benefits provided by this Trade Agreement.
Salinas & Partners, with over 30 years of experience in international trade and customs, are at your entire disposal for any questions or comments that may arise.
