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The EU and New Zealand sealed a free trade deal on Thursday after four years of talks, promising it would protect the environment and unite like-minded partners amid international turmoil.
"This is a historic moment in our cooperation," EU commission chief Ursula von der Leyen told reporters at a joint appearance with New Zealand's Prime Minister Jacinda Ardern, adding that the deal had come after "tough negotiations".
Ardern hailed a "historic further milestone in the strong partnership between two closely-connected like-minded friends."
"And while this is an incredibly important day for our trade relationship, it's also a time to acknowledge the extraordinary time and challenges that Europe is facing," she added.
The pact brings economies of vastly different sizes closer together: New Zealand has a population of just five million people against the EU's 450 million.
Once it has survived a potentially long ratification process, the EU said the deal would eliminate all tariffs on its exports to New Zealand.
It will also open markets in key sectors such as financial services, telecommunications, maritime transport and delivery services.
Wellington said the treaty could increase the value of New Zealand's exports to the EU by around 1 billion euros ($1.04 billion) a year by 2035, particularly in agriculture.
New Zealand exports such as kiwi fruit and meat have until now been subject to prohibitive tariffs.
- 'High ambition' -
Both sides underlined environmental and social issues, amid concern in some corners of Europe that trade deals are a threat to climate goals and upholding rights of workers.
"This free trade agreement includes high ambition outcomes in areas related to the Paris Agreement, climate action, labour rights, gender equality, and harmful fishery subsidies," New Zealand Trade Minister Damien O'Connor told reporters.
His EU counterpart Valdis Dombrovskis called the deal "a state of the art trade deal for the EU" that showed "shared values with sustainability at its core."
And given the war in Russia, he said, "It's important that we are dealing with like minded partners, partners with whom we can actually rely and make sure that our supply chains are resilient and reliable."
The New Zealand agreement, the legal text of which will be finalised over the next months, will have to be agreed by the bloc's member states as well as survive a vote in the European Parliament.
- 'Other side of world' -
The deal with New Zealand will lend comfort to European countries that had grown increasingly frustrated with the lack of progress on opening new trade ties with international partners.
The EU has struggled in recent years to secure the backing of all 27 member states as well as the European Parliament on trade deals, which were once a central policy for the bloc.
France has led the doubters on the wisdom of trade pacts, and French farmers have voiced concerns that the accord with New Zealand would unfairly open their market to New Zealand imports.
Interbev, a livestock and meat association, and dairy association Cniel expressed alarm at "the arrival of several thousand tonnes of dairy products, sheep meat and beef from the other side of the world."
These would land "without any requirement to respect our agricultural production standards", citing herbicides or pesticides banned in the EU but still used in New Zealand.
Brussels insists all imported food must comply with EU standards
The EU is currently also engaged in talks with India, Indonesia and Australia, but other concluded deals have yet to be ratified, including with Chile and Mexico.
Of particular concern in France is a negotiated deal with the South American trade bloc Mercosur that has yet to be signed as several countries demand concrete commitments from Brazil against the deforestation of the Amazon.
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