NZ Concludes Trade Deal with Costa Rica, Iceland, and Switzerland to Boost Sustainability

Named the Agreement on Climate Change, Trade and Sustainability (ACCTS), this landmark deal focuses on enhancing trade in sustainable goods and services.

New Zealand has successfully concluded a pioneering trade agreement with Costa Rica, Iceland, and Switzerland, aimed at removing tariffs on a wide range of products that promote sustainability and environmental goals, announced Trade and Agriculture Minister Todd McClay.

Key Points of the Agreement

Named the Agreement on Climate Change, Trade and Sustainability (ACCTS), this landmark deal focuses on enhancing trade in sustainable goods and services. For New Zealand, it entails the elimination of tariffs on significant exports such as 41 wood products and wool. Additionally, tariffs will be lifted on various other products including wool fibre, slag wool used for insulation, recycled paper, LED lamps, and rechargeable batteries.

Support for Renewable Energy

The agreement also supports New Zealand's renewable energy sector by establishing rules to curb harmful fossil fuel subsidies and setting guidelines for ecolabelling, thereby encouraging the growth of sustainable practices across industries.

Economic Benefits and Market Access

Minister McClay highlighted that ACCTS will create new market opportunities for New Zealand exporters, with benefits expected to increase as more countries join the agreement. This marks New Zealand's first trade deal with these countries outside of the WTO framework, underscoring its commitment to fostering high-quality trade relations while addressing climate and sustainability challenges.

Economic Impact

McClay emphasized that a strong economy is crucial for raising incomes, reducing living costs, and ensuring robust public services for New Zealanders. ACCTS, by promoting sustainable trade practices, contributes to achieving these economic goals.

The ACCTS trade agreement represents a significant step forward for New Zealand in promoting sustainable trade practices and expanding its export markets. By removing tariffs on environmentally beneficial products and supporting renewable energy initiatives, the agreement sets a precedent for future international trade deals that prioritize climate and sustainability objectives.