New Zealand and GCC Finalize Free Trade Agreement

New Zealand's Trade Minister, Todd McClay, recently announced in Doha that New Zealand and the Gulf Cooperation Council (GCC) have reached a Free Trade Agreement (FTA). McClay noted that the negotiations spanned 18 years, culminating in a deal that will eliminate tariffs on 99% of New Zealand's exports to all GCC countries within the next decade. He described the agreement as “the highest-quality accord ever concluded by the GCC and its first with a major agricultural exporter.”  

- Labor Standards: A commitment to the International Labour Organization's *Declaration on Social Justice for a Fair Globalization* to uphold human capital and labor standards.  

- Women's Empowerment: A commitment to the *Convention on the Elimination of All Forms of Discrimination Against Women*, affirming economic empowerment and respect for women's rights.  

- Sustainability and Climate Goals: A chapter on sustainable development ensures alignment with New Zealand's international climate obligations. Both parties recognize the importance of addressing climate change and adhere to the principles of the *UN Framework Convention on Climate Change* and the *Paris Agreement*.  

- Cultural and Treaty Protections: The agreement includes exceptions related to New Zealand's obligations under the Treaty of Waitangi.  

Notably, the agreement integrates the existing trade pact between New Zealand and the UAE. McClay revealed that the FTA includes an investment chapter covering all GCC countries except Saudi Arabia. Separate bilateral investment negotiations between New Zealand and Saudi Arabia will commence after the agreement is signed.  

About the GCC and Trade Relations  

The GCC comprises Saudi Arabia, the UAE, Kuwait, Bahrain, Qatar, and Oman. By export value, it is New Zealand's seventh-largest trading partner. Between July 2023 and June 2024, bilateral trade between New Zealand and the GCC reached NZD 3 billion.  

- NZD 1.8 billion in dairy products  

- NZD 260 million in red meat  

- NZD 72 million in horticultural products  

- NZD 70 million in tourism services