Could the EU be your next export market?

Kiwi goods exports to the EU surged by 28% last year. Here’s how to maximise your export strategy to make the most of the New Zealand-European Union Free Trade Agreement.

The introduction of the New Zealand–European Union Trade Agreement (FTA) has proved to be a great opportunity for Kiwi small businesses looking to diversify into a new market.

Kiwi goods exports to the EU have surged by 28% over the first year of the trade agreement, so the EU may well be your next target market!

Trade and Investment Minister Todd McClay, was quoted as saying: “In the last 12 months our goods exports to the EU surged from $3.8 billion to over $4.8 billion.”

What’s the advantage of exporting to the EU?

Here’s a quick breakdown of the main advantages of the FTA:

NZ exporters can compete more effectively in the EU market against global competitors.
91% of current NZ exports to the EU now enter duty-free, from day one.
The FTA provides greater certainty for NZ services exporters in the EU.

How can you maximise your EU export strategy?

If your business is going to make the most of the FTA, you’re going to need a good export strategy – an approach that can deliver stability and good returns on your export investment.

Let’s look at four options for maximising your export strategy.

Make the most of the FTA benefits for free trade

Make sure you understand the specific tariff reductions and eliminations for your product category under the FTA, which came into force on May 1, 2024.

Use tools like the Tariff Finder (https://www.tariff-finder.govt.nz/) to find the best entry points and focus on goods where duties have been significantly reduced or eliminated to make your pricing more competitive.

Develop an EU-focused online presence

Review and optimise your online presence for EU consumers, so your website, marketing and sales materials are accessible for an EU audience.

Think about things like variations in language and cultural preferences from country to country. Refine your e-commerce platforms and digital marketing to reach specific customer segments across all EU member states that are part of the FTA.

Look for EU partners to collaborate with

Find established distributors, retailers and complementary businesses to collaborate with.

By building relationships with other EU suppliers and companies, you can use their existing networks and market knowledge to speed up your entry to this new market. This can reduce some of the logistical complexities and build trust with your new EU customers.

Highlight sustainability and the high quality of NZ goods

In your marketing, emphasise New Zealand's reputation for high-quality, sustainable products and ethical production practices.

With increasing consumer demand for sustainable goods in the EU, marketing your products' origin and environmental benefits can be a significant differentiator. It’s a great way to attract discerning European customers at a premium price point.

With the New Zealand-European Union Free Trade Agreement proving to be such a success, diversifying into the EU market is a sensible move for your business.

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