Home
Industry
Economy

New Zealand seals trade deal with GCC to boost exports, investment

The trade pact would remove tariffs for 51 per cent of New Zealand’s exports to the region from day one

November 2, 2024

New Zealand seals trade deal with GCC states

Image credit: GCCSG/ X

New Zealand has reached a free trade agreement with the six-nation Gulf Cooperation Council (GCC), which includes Saudi Arabia, Qatar, and the UAE, a deal that will open up significant opportunities for Kiwi exporters in the Middle East.

“The trade pact would remove tariffs for 51 per cent of New Zealand’s exports to the region from day one, and when combined with our recently concluded NZ-UAE CEPA, 51 per cent of our exports to the region will be tariff-free from day one,” New Zealand Trade Minister Todd McClay said in a statement late on Thursday.

New Zealand and GCC trade is worth over $1.79bn (NZD3bn) annually, with New Zealand exporting NZD2.6bn in the year to June 2024, including NZD1.8bn of dairy, NZD260m of red meat, NZD72m of horticulture and NZD70m of travel and tourism services.

HE GCCSG: The Signing of the Joint Statement Concluding the Negotiations for the Trade Agreement between the GCC and New Zealand Underscores the GCC Countries’ Commitment to Strengthening their Economic & Trade Relations with Countries and Global Blocs .https://t.co/CUULHAJlGo…

— مجلس التعاون (@GCCSG) October 31, 2024

Jasem Mohamed Albudaiwi, the GCC’s secretary general, said the volume of trade exchange between the GCC countries and New Zealand reached approximately $2.9bn in 2023, with GCC exports valued at $1.75bn and imports at $1.19bn.

Albudaiwi expects the trade pact to drive economic growth and development in both countries by facilitating trade, attracting investment, and creating new opportunities for businesses and industries.

Meanwhile, the trade agreement with the GCC states comes after New Zealand reached a trade deal with the UAE in September. The pact seeks to advance bilateral trade flows, remove trade barriers, and improve market access for merchandise and service exports.

The trade agreement between New Zealand and the UAE will remove tariffs on about 98.5 per cent of New Zealand’s exports immediately upon implementation, rising to 99 per cent within three years. It builds on the growing economic relations between the two countries, with bilateral non-oil trade reaching Dhs3bn (NZD1.3bn) in H1 2024.