By contrast, the EU is New Zealand鈥檚 fourth largest trading partner (after China, Australia and the US). And although the deal has been criticised by some in the听, it is still expected to be worth an extra NZ$1.8 billion per annum to the New 茄子视频app官网economy by 2035.
But the trade deal, announced in late June during Prime Minister Jacinda Ardern鈥檚 European visit (during which she also attended a NATO summit), has been hard won.
It went through 12 negotiation rounds in the face of various challenges and distractions for the EU: Brexit,听, the听听and the war in Ukraine. All of which suggests more than just economic motivations were at play for the 27 EU member states.
Digging deeper, then, we can see several significant strategic considerations for the European Union that demonstrate some of its current thinking, not only about the direction of its global trade policy but also its international ambitions.
The EU back on track
Negotiations between the EU and New 茄子视频app官网were formally launched in 2018 (alongside a yet-to-be concluded EU鈥揂ustralia FTA). At the time, New 茄子视频app官网was one of only a handful of countries that had neither concluded nor was negotiating a preferential trading relationship with the EU.
The EU听听New 茄子视频app官网and Australian negotiations as a counter to the perceived trade protectionism represented by Brexit and the Trump presidency in the US.
With a population of five million and a GDP of just听, New 茄子视频app官网doesn鈥檛 represent much financially for the EU. Symbolically, however, it has wider significance.
The agreement听听a 鈥渨elcome and much-needed resumption of an ambitious EU trade agenda鈥. This had been hampered by member state resistance to ratifying the FTA with the South American regional trade bloc Mercosur, increased protectionism due to the pandemic, and EU trade sanctions against Russia.
Climate change and security
The EU has also听听as containing the 鈥渕ost ambitious sustainability commitments in a trade agreement ever鈥. The inclusion of mutually sanctionable commitments to the Paris Agreement, is part of strengthening the EU鈥檚 claim to be a world leader in climate change policy.
The EU already has some of the strongest climate policies in the world, with around 87% of its citizens听听鈥渢he EU should set ambitious targets to increase renewable energy and support energy efficiency鈥.
Although the EU was a leading voice in the Paris Agreement, it is trickier to persuade non-member countries to follow its own high environmental standards. This FTA will set a new standard, not only for the EU but also the world.
A voice in the Indo-Pacific
Perhaps most importantly, though, closer cooperation with New 茄子视频app官网can strengthen the EU鈥檚 place in the increasingly fraught Indo-Pacific, a region where it has听听New 茄子视频app官网as one of its partners.
EU and New 茄子视频app官网officials often play up their shared values of democracy, human rights and the rule of law. And the EU is an important stabiliser in the rules-based international system that remains so important for small states like New Zealand.
EU cooperation with like-minded countries in the Pacific is a key factor in its pursuit of recognition and legitimacy in a region that is increasing in geo-strategic importance.
The EU launched its Indo-Pacific strategy in 2021, following the example of Australia (2016) and the US (2017), and New Zealand鈥檚 own听听(2018).
And while New 茄子视频app官网is a small country, it enjoys a broadly positive international image through its independent foreign policy, and is an important regional player. It is a member of the Pacific Islands Forum, and was the first country in the world to sign an FTA with China.
Benefits beyond trade
The establishment of the听听pact in 2021 further elevated the significance of New Zealand鈥檚 importance as an Indo-Pacific partner to the EU, involving as it did the withdrawal of Australia from a contract to buy French submarines.
That deal had been viewed by France as the cornerstone of its own approach to the region. Its collapse has somewhat soured Australia鈥檚 relationship with one of the EU鈥檚 key players.
For all these reasons, then, the EU-NZ FTA can be viewed as a positive development that cements an economic relationship as well as emphasising common values, goals and benefits beyond purely monetary gains.
While potentially economically advantageous to New 茄子视频app官网鈥 and not without its critics 鈥 it can be understood as a signal of the EU鈥檚 intention to extend its global influence beyond trade, staking a claim as a political and security actor of real significance.
This article was originally published on听.听
