New Zealand and European Union sign free trade agreement

Representatives from New Zealand and the European Union signed a free trade agreement on Sunday in Brussels in a boost to economic relations.

The trade accord brings the EU and New Zealand closer together and boosts the bloc's "economic security," European Commission President Ursula von der Leyen said in a statement.

New Zealand Prime Chris Hipkins said the trade deal would "generate substantial new economic opportunities."

Trade between the duo is expected to increase by 30% within 10 years under the new deal and EU investment into New Zealand is expected to grow by 80%, according to the commission.

Exports from the EU to New Zealand alone could grow by up to €4.5 billion ($5 billion a year), according to EU figures, with tariff savings of nearly €140 million already possible for companies in the first year. The agreement should be able to enter into force in 2024.

Various provisions are to regulate digital trade, cover access for EU agricultural exports, joint commitments to reduce investments in fossil fuels and climate change commitments.

Negotiations started in 2018 and concluded in 2022. The trade deal now goes to the European Parliament and the New Zealand parliament for approval to enter into force.

Hipkins was accompanied by his trade minister, Damien O'Connor who signed the agreement with EU Trade Commissioner Valdis Dombrovskis.

New Zealand also joined an EU research programme called Horizon Europe to boost cooperation in scientific research.