Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/174796
Authors: 
Lee-Makiyama, Hosuk
Year of Publication: 
2015
Series/Report no.: 
ECIPE Policy Brief 7/2015
Abstract: 
Given the Trans-Pacific Partnership (TPP) and several intra-Asian agreements, the EU is focused on large-sized free trade agreements (FTAs) to avoid trade diversion and to maintain Europe's ability to set the trade policy agenda. The EU is now negotiating with all TPP countries except Australia, New Zealand and Brunei, a blind spot worth US$1.5 trillion in GDP. The idea of an FTA with New Zealand already enjoys the support of key EU Member States. New Zealand is consistently ranked number one on economic and personal freedom indices, and despite accounting for only 0.2% of EU external trade, New Zealand's economy is still on par with previous EU FTA partners like Peru and Vietnam. Measured in final consumption, New Zealand is larger than Chile, Malaysia and Singapore. Agriculture is a sensitivity for some Member States in any trade negotiation. However, the EU has already liberalised New Zealand's key export items such as sheep meat and wool. On other meats, New Zealand pays half the regular duties. Products with full duties have either strong seasonal complementarities or specialisation, notably on kiwifruit and dairy, and none of New Zealand exports are amongst European sensitivities, e.g. grains or sugar. The existing duty-free treatments and complementarities make a case for an agreement negotiated with relative ease: If an FTA cannot be done with New Zealand, it cannot be done at all. (...)
Document Type: 
Research Report

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