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Factsheet: EU-New Zealand Trade Agreement - Trade in services and digital trade

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EU-New Zealand Trade Agreement

Trade in services has seen a rapid expansion in recent years, as advances in technology make cross-border tradability easier and global consumption patterns change how businesses operate. The EU-New Zealand Free Trade Agreement (‘FTA’) therefore seeks to stabilise and improve conditions for trading services between the EU and New Zealand.

Benefits of the EU-New Zealand Free Trade Agreement

  • EU telecommunications suppliers will benefit from non-discriminatory procedures for the allocation and granting of rights of use of scarce resources in New Zealand, including radio frequency spectrum (such as 4G and 5G).

  • Unless a reservation applies, EU suppliers of financial services established in New Zealand will be able to supply any financial service that is new to New Zealand if it can supply that service in the EU and it is permissible under New Zealand law.

  • EU-flagged or EU supplier-operated vessels will be able to access and use New Zealand ports on a commercial and non-discriminatory basis where no reservation has been specified, on conditions no less favourable than those accorded to New Zealand vessels. This includes for feeder services, subject to authorisation.

Market Access Commitments

The EU and New Zealand have placed certain restrictions in relation to the obligations set out above that may limit the supply of cross-border services or the right to establish an enterprise. These are known as 'reservations', or non-conforming measures. These can be found in the respective Schedules of the EU and New Zealand under Annex 10-A and 10-B of the FTA.

If a reservation is specified for an existing measure (i.e. currently applicable laws, regulations or rules), a more restrictive measure cannot be imposed at a future date (known as a 'standstill'). If that reservation is removed or partially lifted in future, it cannot later be reimposed (known as 'ratcheting'). Hence the progressive liberalisation of services trade will be ensured in the future between the EU and New Zealand.

A limited number of services sectors/subsectors have been excluded from the FTA, namely:

  • Air services or related services in support of air services*.
  • Audio-visual services.
  • National maritime cabotage.

*Other than aircraft repair and maintenance services; computer reservation system (CRS) services; ground handling services; the selling and marketing of air transport services; and the following services provided using a manned aircraft, whose primary purpose is not the transportation of goods or passengers: aerial fire-fighting; flight training; spraying; surveying; mapping; photography; aviation adventure services; and other airborne agricultural, industrial and inspection services.

Movement of Natural Persons

The EU-New Zealand FTA includes commitments on the cross-border movement of services suppliers into the territory of the other party, for business purposes. This includes procedural commitments facilitating cross-border movement, such as transparency of entry conditions and expeditious processing of visa applications. New Zealand offers a range of visa options for EU suppliers of services in New Zealand, which can be found here.

The following categories of services suppliers are allowed to temporarily enter the EU and New Zealand for business purposes:

  • intra-corporate transferees;
  • independent professionals;
  • business visitors; and
  • contractual service suppliers.

Thanks to the FTA, spouses or partners and dependent children accompanying an EU intra-corporate transferee will also be able to enter and temporarily stay in New Zealand.

Digital trade

The rapid rise and expansion of e-services and e-commerce platforms promises new opportunities for businesses and consumers. Digital services makes up a large and growing part of the New Zealand economy, providing immense opportunities for EU businesses and digital service suppliers.

The EU-New Zealand FTA facilitates digital trade whilst ensuring trust and protection of people’s rights and interests.

The Digital Trade chapter of the FTA