EU-NZ free trade talks get under way
European trade chief Cecilia Malmstrom has been welcomed to the capital, as international trade and diplomacy circles look to mark the beginning of a free trading relationship between New Zealand and the European Union (EU).
Offering her congratulations to Prime Minister Jacinda Ardern – in hospital awaiting the birth of her first child – Malmstrom said she and Trade Minister David Parker were pleased to give birth to the launch of free-trade negotiations.
Malmstrom is one of the most powerful leaders in the European Commission – the body which negotiates trade on behalf of the EU.
Her visit marks the formal launch of talks, with trade negotiation teams from both sides set to start their first round of bargaining in Brussels from July 16 to 20.
At a press conference after their meeting, Malmstrom and Parker said the FTA represented a ‘‘very special opportunity’’.
‘‘Today is an important milestone in EU-New Zealand relations. Together, we can conclude a win-win agreement that offers benefits to business and citizens alike,’’ she said.
‘‘This agreement is an excellent opportunity to set ambitious common rules and shape globalisation, making trade easier while safeguarding sustainable development. We can lead by example.’’
The deal was hoped to stand up as a counter and example of what a ‘‘rules-based’’, progressive trade agreement could look like, particularly in the face of a push towards protectionism from some countries, including the United States.
Agriculture had always been a difficult issue at the end of most negotiations but a compromise had always been found, Malmstrom assured.
Meanwhile, New Zealand was expected to be more closely aligned on the issue of medicine patents with Europe, than it was with the United States during negotiations for the TransPacific Partnership Agreement (TPPA), but the issue was likely to be another sticking point at negotiations regardless.
Both sides said it would be carefully talked about.
Parker said the agreement would be held as a guiding example for a new type of trade deal.
‘‘We can not only do good for ourselves in this trade agreement but we can actually set out rules for how trading agreements should look for the betterment of the world.’’
The Government recently launched its ‘‘Trade For All’’ trading agenda, which calls for a ‘‘progressive and inclusive’’ approach to negotiating trade deals.
It sits in line with similar EU policy that seeks to create a new kind of trade deal that takes into account environmental sustainability, inclusiveness for minority and indigenous groups and the protection of human rights.
The Government and the EU have already ruled out the inclusion of any investor state dispute (ISDS) clauses in this deal – a controversial mechanism that allows companies to sue governments over policy changes that may leave them worse off.
While it’s not an uncommon chapter in such agreements, ISDS clauses are rarely used given that there is a highthreshold to pass before it can be triggered.
The EU free-trade deal enjoys cross-parliamentary support. National foreign affairs and trade spokesman Todd McClay said its success would be judged on agricultural access to the European market. ‘‘It is also important that this is a modern, fair and inclusive trade deal.
‘‘To be inclusive, smaller businesses and service providers must benefit from better trade rules, while dairy, beef and lamb exporters must get a much better deal than they currently have.’’
‘‘Today is an important milestone in EU-New Zealand relations.’’
Trade Minister David Parker