There was no fanfare from Brussels to celebrate the early May implementation of a new free trade agreement between the European Union and New Zealand. Instead, a press release stated that EU businesses, producers, and farmers can now benefit from many new export opportunities. However, just three months ago, European farmers protested against similar trade agreements, including the one with New Zealand. They also opposed the Mercosur (South America) deal, which is currently on hold due to French opposition.
On May 2, when Emmanuel Macron met with farming unions at the Elysee without clearly outlining his vision for French agriculture, this "other side of the world" treaty quietly came into effect.
What should we remember about this agreement that the European Commission promotes as exemplary?
The upside of the agreement with New Zealand is that it aims to "reduce taxes on European businesses by €140 million," thus increasing trade "by up to 30% within a decade." The deal is also expected to boost EU exports by "up to €4.5 billion per year" and EU investments in New Zealand by "up to 80%," according to Brussels.
Everything seems perfect, at least from the Europeanist perspective.
But on the downside, European farmers are worried about the influx of beef, lamb, and dairy products from the other side of the world. They fear that carefully designed tariff measures, meant to protect European livestock farms, will not be enough. Brussels claims it can limit the quantity of imported New Zealand meat by imposing restrictive tariffs. We'll see how it plays out.
Then there's the inconsistency of environmental rhetoric. This is where things fall apart. What will the carbon footprint of this agreement look like? We're talking about climate change and producing locally to minimize transportation emissions, yet here we are importing goods across the world. What about the maritime shipping from Oceania?
The additional trade flow expected between the EU and New Zealand under this free trade agreement will increase greenhouse gas emissions from the transportation of goods.