BRUSSELS: The EU has agreed to start talks on a free trade agreement with New Zealand.
The agreement to launch talks was announced in Brussels after Prime Minister John Key met with European Commission President Jean-Claude Juncker and European Council President Donald Tusk.
In a joint statement they said the talks would focus on the next steps needed to formally launch negotiations “to achieve a deep and comprehensive high-quality free trade agreement”.
“The EU and New Zealand share a strong and close bond, and today’s discussions have underlined our mutual desire to further strengthen our relationship,” Mr Key said.
He said a FTA should provide greater access to European markets and make it easier for New Zealand and EU companies to do business with one another.
The announcement builds on the EU’s recently revised Trade Policy Strategy which has an increased focus on the Asia-Pacific region.
Mr Key said the EU was a key trading partner for New Zealand with two-way trade totalling over $19 billion.
The EU was also New Zealand’s second-largest investment source and largest research and development partner.
The agreement follows the successful conclusion earlier this year of New Zealand’s FTA with South Korea and last month’s deal on the 12-nation Trans-Pacific Partnership.
“These agreements are part of the government’s wider plan to diversify the economy by building strong trade, investment and economic ties around the world,” Mr Key said.
In 2014 the EU was New Zealand’s third largest trading partner, after Australia and China.
Mr Key has had his eye on an FTA with the EU for a couple of years, while Trade Minister Tim Groser said the announcement was a small but significant first step.
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