European Commissioner for Trade Cecilia Malmstrom yesterday announced she would seek approval from the European Union's 28 member states to launch trade negotiations with New Zealand.
The EU announcement indicates these negotiations would be one element in a new comprehensive overhaul of the EU trade strategy, Trade for All, that seeks to improve policy in three ways. It will ensure that trade policy effectively delivers economic results.
It aims to conduct negotiations in an open and transparent way. And it makes sure trade responds not only to Europe's interests but also its values. Each of these principles has implications for any future negotiations with New Zealand.
A trade policy that delivers results first has to focus on the right partners. That's why a priority in the new approach is to bring the world's largest single market closer to the world's most economically dynamic region, the Asia Pacific. The EU recognises that this region's dynamism is central to its own plans for growth. It also understands that the Asia Pacific's increasing economic weight gives the EU a strategic interest in the region's liberal, democratic and sustainable development. The EU looks to New Zealand as a longstanding, like-minded partner with similar interests for the region.
Getting results also means focusing on the trade barriers that matter today. Trade and the way people benefit from it are changing fundamentally. Trade is no longer exclusively, or even primarily, about moving finished products back-and-forth between two parties. Rather, it is increasingly a multilateral process that binds together producers, service providers and investors in and from many different countries in complex international value chains.