New Zealand has successfully concluded negotiations with the Gulf Cooperation Council (GCC), comprising six nations, on a trade agreement set to open significant opportunities for New Zealand exporters in the Gulf region.
The announcement comes after extensive reengagement with the GCC, including meetings with GCC Ministers at the WTO Ministerial Meeting in Abu Dhabi earlier this year.
It marks the culmination of an 18-year ambition for New Zealand to establish a substantial trade agreement in the Middle East.
The agreement is the highest-quality deal the GCC has reached so far and is notable as its first with a major agricultural exporter. It will provide duty-free access for 99% of New Zealand’s exports over the next decade. Combined with the recently concluded NZ-UAE Comprehensive Economic Partnership Agreement (CEPA), 51% of New Zealand’s exports to the region will enjoy tariff-free status from day one.
Trade between New Zealand and the GCC exceeds $3 billion annually, with exports reaching $2.6 billion for the year ending June 2024. Key export categories include $1.8 billion in dairy products, $260 million in red meat, $72 million in horticulture, and $70 million in travel and tourism services.
The agreement incorporates provisions to facilitate business operations, offering preferential access for primary sector exporters, streamlined customs processes, reduced trade barriers, and commitments ensuring a level playing field for Kiwi service businesses entering the market.
Additionally, the agreement includes chapters on intellectual property, transparency, and trade and sustainable development. These provisions encompass labour standards, climate, and women’s economic empowerment, with a commitment to the Convention on the Elimination of All Forms of Discrimination against Women (CEDAW). Importantly, New Zealand has secured its Treaty of Waitangi exception to uphold treaty obligations.
This agreement complements the NZ-UAE CEPA announced in September, representing a significant step in the Government’s strategic efforts to strengthen international ties and double the value of exports within the next decade.
Concluding a trade agreement with the GCC has been a long-term goal for successive New Zealand governments. Strengthening New Zealand’s trade relationships supports economic growth, increased incomes for New Zealanders, and job creation.
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