European Commission chief Ursula von der Leyen said on Thursday the EU and New Zealand had sealed a free trade agreement after four years of talks and promised to deepen ties.
“This is a historic moment in our cooperation,” von der Leyen told reporters in a joint press statement with New Zealand Prime Minister Jacinda Ardern, adding that the deal came about after “tough negotiations”.
Ardern welcomed “another historic milestone in the strong partnership between two close-knit, like-minded friends.”
The pact brings economies of very different sizes closer together: New Zealand has a population of just five million people compared to the EU’s 450 million.
Once it survived a lengthy ratification process, the EU said the deal would remove all tariffs on its exports to New Zealand and open up markets in key sectors such as financial services, telecoms, maritime transport and delivery services.
Both sides highlighted environmental issues, amid concerns in some corners of Europe that trade deals pose a threat to climate targets and respect for workers’ rights.
“This free trade deal includes ambitious results in areas related to the Paris Agreement, climate change, labor rights, gender equality and harmful fisheries subsidies,” New Zealand Trade Minister Damien O’Connor told reporters after a recent round of talks in Brussels.
His EU counterpart Valdis Dombrovskis called the agreement “a state-of-the-art trade agreement for the EU” that has “common values with sustainability at its core”.
The New Zealand agreement, which is to be legally concluded in the next few months, must be approved by the member states of the bloc and the European Parliament.
The deal with New Zealand will bring solace to European countries, which have grown increasingly frustrated at the lack of progress in opening new trade links with international partners.
The EU has struggled in recent years to secure the support of all 27 member states, as well as the European Parliament, for trade deals that were once central policy for the bloc.
France has led doubters about the prudence of trade deals, and French farmers have expressed concerns that the deal with New Zealand would unfairly open their market to New Zealand imports.
The EU is also currently in talks with India, Indonesia, New Zealand and Australia.
Of particular concern in France is a negotiated deal with South American trading bloc Mercosur that has yet to be signed, as several countries are demanding concrete pledges from Brazil against deforestation in the Amazon.
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