Friday, April 26, 2024

EU deal to be ‘quick’

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New Zealand and the European Union have confirmed their joint commitment to launch formal free-trade agreement negotiations as soon as possible with the added promise from European Commission president Jean-Claude Juncker a deal could be done in two or three years.
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Juncker was speaking in Brussels after a top-level trade meeting with NZ Prime Minister Bill English, stating he believed a faster FTA negotiation than normal would be possible because of the “quality” of the relationship between the EU and NZ.

“This kind of negotiation normally takes between five and 10 years but I would think that two to three years will be enough because we have very similar situations,” Juncker said, commenting in response to a press conference question concerning the fact the recent Canadian FTA had taken 10 years to conclude.

“We are friends; we are allies,” he said, pointing out that the EU was the second-largest trading partner for NZ with a trade volume of €8.1 billion.

“So, we know each other and I think this will be done in a shorter period of time than is usually required.”

Juncker had earlier introduced English to the Brussels press corps with the comment that while there were clearly difficulties to be faced in the EU at present, he was sure any problems concerning a trade deal with NZ could be solved, given the fact that NZ was such a “close ally” of the EU.

English took the same theme, speaking of the close partnership between NZ and Europe, a partnership he said he was focused on developing further.

“We are natural partners in an uncertain and changing international environment and our shared values matter more now, even if we’ve taken them for granted in the past,” he said.

“Our trade and economic ties are already strong but we think they can grow significantly.”

Applauding Juncker for his leadership and for the commission’s clear willingness to remain open for business on trade agreements “despite some of the political challenges that go with it”, English said he hoped a high quality agreement could be concluded “fairly promptly”.

“High quality FTAs help to create jobs, raise incomes and bolster prosperity in any country where they are in force,” he said.

“We are keen to work together, therefore, to create these opportunities.”

The issues surrounding the United Kingdom’s Brexit decision were also discussed by the two leaders with English saying he had reiterated NZ’s commitment to working constructively with both the EU and UK throughout the process.

Asked if he would prefer to see the UK remain part of the single market or customs union or if he thought NZ would get a better deal with the UK if it was completely out of those organisations, English delivered a diplomatic response.

“It’s up to the discussions I’m going to have with the EU,” he said.

“We’ve had a long-standing trade relationship with the UK going back into the late 19th century, which had gone through many different forms, including when the UK joined the EU 40 or 50 years ago.

“They will have those discussions with the EU and then, when they’re ready, we will negotiate with the UK.”

In response to the same question, however, especially the prospect of NZ getting a “better deal” with a UK that was outside the single market, Juncker answered with just one word: "No."

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