New Zealand and Gulf Cooperation Council Finalize Trade Agreement
New Zealand has successfully concluded a significant trade agreement with the six Gulf Cooperation Council (GCC) countries, marking a milestone in economic relations between the region and the South Pacific nation. The agreement, announced by New Zealand Trade Minister Todd McClay, is expected to open vast opportunities for New Zealand exporters in the Middle East, enhancing bilateral trade that reached $2.9 billion in 2023.
The newly established trade deal will eliminate tariffs on approximately 51% of New Zealand's exports to the GCC from the outset, with the aim of providing duty-free access to about 99% of exports over a ten-year period. This comprehensive framework is anticipated to bolster trade exchange and economic cooperation between New Zealand and the GCC, which includes countries such as Saudi Arabia, the United Arab Emirates, and Qatar.
Minister McClay expressed pride in achieving this long-sought agreement, noting that it has been a goal of successive New Zealand governments for nearly two decades. He emphasized the importance of the deal, describing it as a high-quality arrangement that aligns with New Zealand's economic strategy to diversify its trade partners.
The Secretary-General of the GCC, Jassim Mohammed Al-Budaiwi, also highlighted the significance of this agreement, stating that it reflects the GCC's commitment to strengthening economic ties with global nations. He expressed optimism that the agreement would enhance investment opportunities and expand cooperation in areas of mutual interest.
This new trade agreement comes on the heels of New Zealand's recent trade pact with the UAE, signed in September 2024. The GCC's trade dynamics with New Zealand show a robust exchange, with GCC countries exporting $1.75 billion worth of goods to New Zealand while importing $1.19 billion in 2023. The successful conclusion of this trade agreement follows previous negotiations that began in 2007 but were stalled due to a moratorium on free trade agreements by the GCC. In March 2022, the GCC nations agreed to re-engage with New Zealand, leading to the current agreement's fruition.
