The European Parliament has approved the European Union's free trade agreement with New Zealand, marking its first approval of such an agreement in over three years, according to ESMagazine.

Wide majority

EU lawmakers voted 524 to 85 in favor of the agreement, which could now come into effect in early 2024.

Daniel Caspary, the German Christian Democrat overseeing the agreement's passage through parliament, stated that the vote was "overdue," as the last trade agreement approved was with Vietnam in February 2020.

"We also hoped to bring our trade agreements with Australia and maybe also Mercosur to a good conclusion in this term," he continued.

The parties concluded negotiations in June 2022 on an agreement that could boost trade by 30% and underscores Europe's push for alliances to offset lost business with Russia and increasing attention on China.

Agricultural imports

The European Commission has reached several agreements, but their approval by EU governments and lawmakers has proven challenging, with France particularly reluctant to clear agreements leading to more agricultural imports.

Agreements with Chile and Mexico are pending, while the EU negotiates additional environmental guarantees from the South American Mercosur bloc. EU-Australia talks remain stalled.

The New Zealand agreement will eliminate approximately €140 million (€153 million) in annual tariffs on EU exports, including clothing, chemicals, pharmaceuticals, and machinery, as well as wine and confectionery products.

The EU will increase its beef quota from New Zealand by 10,000 tons and will boost volumes for lamb, butter, and cheese, though farmers in the country have expressed disappointment.

The agreement is the EU's first to include potential sanctions for violating environmental or labor standards. The BusinessEurope lobbying group said the parliamentary vote was a welcome step.

The German environmental campaign group PowerShift stated that the agreement would boost trade in climate-harmful goods and increase carbon emissions from long-distance transportation.