Early ratification of a free trade agreement (FTA)
The European Union FTA Legislation Amendment Bill received Royal Assent, completing the process for New Zealand’s ratification of the deal with the largest trading bloc in the world.
Trade and Agriculture Minister Todd McClay says all parties involved in the committee process agreed to complete the legislative process by the end of March. An earlier entry into force will also see tariff savings of $43 million for NZ kiwifruit exporters, on top of the $3 million for onion exporters this season.
Trade and Agriculture Minister Todd McClay says all parties involved in the committee process agreed to complete the legislative process by the end of March.
Onions NZ chief executive James Kuperus says it is great news for New Zealand onion growers, coming in time for the last half of the export season. He points out that New Zealand onion growers are having a better season this year.
“The EU is New Zealand’s largest export onion market. We estimate that about 35,000 tonnes would be exported to the EU, tariff free, post 1 May. This volume would be worth an extra $3m or so, thanks to the early removal of the 9.6% tariff. Quality is exceptionally good. This season’s onions will keep well and maintain their great taste” Kuperus says.
Most of the 2024 crop has now been harvested and stored with exceptional quality. Favourable weather conditions throughout the growth and harvesting stages have instilled confidence among growers regarding the quality, quantity, and storage capabilities of this year’s crop, notes Kuperus.
Export operations have already commenced, with shipments bound for European and North Asian markets, and plans in place for exports to Indonesia soon.
