The European Commission announced yesterday (15 October) it will seek to negotiate separate FTAs with both New Zealand and Australia as part of its trade strategy for the next four years, reports The NZ Herald.
The caveat is that talks will take in account 'EU agricultural sensitivities', the report said
The announcement is the culmination of years of effort on the part of New Zealand to improve trade conditions in what is a market of 500m consumers.
EU Trade Commissioner Cecilia Malmstrom told the New Zealand Herald after the release of the strategy that it made political and economic sense to hold talks with New Zealand.
'When I started this job [a year ago] I was a bit surprised that we have free trade agreements either concluded or ongoing with so many part of the world but not with New Zealand and Australia who are national allies, friends, partners in so many other issues.'
Talks were happening already to establish the level of ambition which would be announced soon.
'This is a message of intent from our side. We think it would make sense economically and politically to engage with New Zealand,' she said.
'We know New Zealand has very offensive interests in dairy and agriculture, absolutely no secret, and you are very competitive there,' she said.
'But there are other items as well where we could deepen our co-operation as well.'
The next steps will be for the EU to conduct an impact assessment of the FTAs - which are likely to be held separately but in parallel, but talks may not begin for perhaps two years, the report said.
The EU is New Zealand's third largest export market with NZ$7.7bn in goods and services last year, according to the NZ Herald.
The value of EU imports is higher at at NZ$11.13bn but New Zealand is 51st in EU ranking.
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