EU chief says free trade deal with New Zealand is a 'historic moment'

After four years of talks, European Commission chief Ursula von der Leyen said the free trade deal between the EU and New Zealand was about to be sealed, and that it would deepen ties.

This is a historic moment in our cooperation, according to a joint press statement with New Zealand Prime Minister Jacinda Ardern, who said that the deal had come after tough negotiations. Ardern said that the deal had come after a historic partnership between two closely connected like-minded friends. New Zealand has a population of just five million people, compared to the EU's 450 million.

After it survived a long ratification process, the EU said it would eliminate all tariffs on its exports to New Zealand and open markets in key sectors such as financial services, telecommunications, maritime transport and delivery services.

Both sides underlined environmental issues, as there was concern in some corners of Europe that trade deals are a threat to climate goals and upholding rights of workers.

New Zealand Trade Minister Damien O'Connor told reporters after a final round of talks in Brussels that the free trade agreement includes high ambitions in areas like the Paris Agreement, climate action, labour rights, gender equality, and harmful fishery subsidies.

His EU counterpart Valdis Dombrovskis called the deal a state of the art trade deal for the EU that shared values with sustainability at its core. The New Zealand agreement, which will be legally finalised over the next few months, will have to be agreed by the bloc's member states as well as the European Parliament.

The deal with New Zealand will give comfort to European countries that have 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 and the European Parliament on trade deals, which were once a central policy for the bloc.

France has led the doubts about 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.

The EU is currently in talks with Australia, Indonesia, New Zealand and India.