New Zealand ready for negotiations on EU trade deal

The New Zealand government on Wednesday called for public submissions on the proposed free trade agreement (FTA) with the European Union before negotiations are expected to officially begin in 2017.

"New Zealand enjoys a close and long-standing relationship with the EU and last year concluded a Partnership Agreement on Relations and Cooperation. A modern, high-quality FTA is the missing link in our important relationship," Trade Minister Todd McClay said in a statement.

The agreement reached in Brussels at the end of October between New Zealand Prime Minister John Key and European Commission President Jean-Claude Juncker and European Council President Donald Tusk was the first step toward a comprehensive and high-quality FTA, he said.

The EU was New Zealand's third largest trading partner, with two-way trade valued at 19.6 billion NZ dollars (13.25 billion U.S. dollars) in goods and services in the year to June 2015.

The EU was also the second largest source of foreign direct investment in New Zealand, as well as a major partner for New Zealand companies and organizations conducting international research and development.

"Early next year, we expect to begin discussions to define the scope and overall approach to the negotiations," said McClay.

The most likely date for the start of negotiations would be early 2017.

New Zealand is one of only six World Trade Organisation members without an FTA either in place or under negotiation with the EU, while the EU is the only one of New Zealand's top 10 trading partners without an FTA in progress.