New Zealand is rolling out the welcome mat for European businesses, with Prime Minister Christopher Luxon urging EU nations to invest in Kiwi infrastructure as global trade tensions continue to simmer.
More than 400 businesses were present at the European Union-New Zealand Business Summit today in Auckland, with 26 European Union member states represented at the talks.
It was the first time an EU Trade Commissioner had visited the country since 2018 – for the formal launch of free trade talks.
Speaking at the summit, Luxon pitched New Zealand as a “safe haven” for international capital, telling ambassadors from all EU countries that the Government is keen to partner with sovereign wealth funds and other foreign investors to fund major infrastructure projects.
“We’ve got classic infrastructure like prisons and military bases and hospitals to build,” Luxon said. “We want to be using domestic pools of capital, partnering with international pools of capital.”
The summit took place one year after the EU-NZ Free Trade Agreement came into force — a deal that has already boosted two-way trade by $1.7 billion, bringing the total to more than $21 billion annually.
European Commissioner for Trade Maroš Šefčovič described the agreement as “a new golden bar”, calling it the best deal the EU has signed.
Zespri, one of New Zealand’s largest exporters, was already reaping the benefits.
Chief executive Jason Te Brake said one in three kiwifruit exported this year would be bound for the EU, with European sales growing 80% over the past two years.
Despite the positive momentum, New Zealand still faced a $1.4 billion trade deficit up $200 million from the previous quarter – highlighting the need to boost exports and attract foreign investment.
Trade Minister Todd McClay and his EU counterpart were also exploring the possibility of integrating the EU with the CPTPP, a mega trade pact spanning the Asia-Pacific. While that goal remained distant, officials celebrated the progress made so far.
McClay said the summit would open doors for trade, creating opportunities for business growth and investment.
“We’re committed to unlocking the full potential of this agreement to boost trade, investment and partnership so businesses across New Zealand and Europe can flourish.”
Šefčovič smiled as he summed up the EU and New Zealand common ground: “You like to have friends, you work hard – but you also like to have a pint after you finish your working hours.”
The inaugural meeting of the NZ-EU Trade Committee would be held on Saturday in Queenstown.
