EU approves start of negotiations for free trade deal with Australia and New Zealand

The Sydney Morning Herald reports that European officials will land in Australia next month to begin negotiations on a free trade deal, after the EU’s governing council gave its long-awaited official authorisation on Tuesday.

The council also approved negotiation of a similar deal with New Zealand. They expect the agreement to increase EU exports to New Zealand and Australia by about a third in the long term, through removing customs duties and other barriers.

But the council has added a warning that it wants to make sure the deal doesn’t compromise its high standards of social and environmental protection, or hurt small and medium sized business.

The Guardian commented With Theresa May insistent that leaving the EU will involve exiting the customs union and the bloc’s external commercial policy, the announcement from Brussels opens up the possibility that the EU could enjoy better terms with the two Commonwealth nations after Brexit than the UK will.

The UK will not be able to start its negotiations over future trade with New Zealand and Australia until 30 March 2019. The European commission president, Jean-Claude Juncker, has vowed to complete the EU’s talks with the two countries by 31 October of that year, when his time in office expires.

Brussels is eyeing up export opportunities for motor equipment, machinery, chemicals, processed foods and services. In recent months, the EU has struck deals with Canada, Japan, Singapore, Vietnam and Mexico.