Building closer trade ties with the EU

At an Auckland Chamber of Commerce event looking at the trading future between the EU and New Zealand, officials on both sides highlighted existing foundations for good trade relations. However, a European Commission trade representative said more work was needed if the EU was to consider deepening trade ties.

“Europe is open for business but it will negotiate with countries on the basis of a business case,” says Director, Directorate-General for Trade, Marco Petriccione.

According to Petriccione, the European Union has made a conscious decision to be more strategic about its trade agreements and ‘to get more selfish’. 

“We don’t discriminate against smaller countries – many of our trade relationships are made up of smaller countries – but we need an explanation of how the agreement would enhance the trade relationship for the EU and that exercise is obviously more difficult because of the size disparities.”

“The EU is looking to trade [to stimulate] economic growth and job creation.”

Small but influential

In New Zealand’s favour, Petriccione says, it is a small but influential player from the Asia Pacific region and the country has shown itself to be a skilled trade negotiator.

“The FTA [Free Trade Agreement] with China in 2008 was remarkable for its ambition and scope, and its timeframes.”

The EU is also watching the progress of the Trans-Pacific Strategic Economic Partnership, which currently includes New Zealand, Brunei, Chile and Singapore but is pending expansion to include Australia, Peru, Vietnam and the US.

“High quality, liberal trade deals with New Zealand are beneficial in that they introduce the idea and the example of more open trade relations to other countries in the region.”

Petriccione and the New Zealand Minister of Trade Tim Groser also alluded to the fact China's decision to enter into an FTA with New Zealand was strategic and that strategy would underpin any EU-NZ trade agreement. 

“China didn’t choose New Zealand first because it had to get access to New Zealand as a trading partner, it was a strategic move in this part of the world. All trade decisions come down to strategy,” says Groser.

“We are looking at how to move the trade agenda forward with the EU but the move will be a strategic one.”

“Australia and New Zealand have been focused on Asia but we have not forgotten nor are we turning our back on our cultural heritage with Europe."