European Commission seeks mandate for FTA talks

The European Commission is asking for a mandate to start negotiating free trade agreements with New Zealand and Australia.

The executive body for the European Union is launching a new trade strategy.

The strategy wants more effective policies and improved transparency, including a commitment to release key texts in Europe's negotiations in the Trans-Atlantic Trade and Investment Partnership (TTIP), a similar far-reaching trade and investment deal to the Trans-Pacific Partnership. The TTIP sparked protests across the continent.

Top priorities in the strategy include reviving the World Trade Organisation and concluding the TTIP, along with a free trade deal with Japan and an investment agreement with China, while also opening the door to a push into Asia-Pacific, Latin America and Africa.

The priority for Europe's Asia-Pacific strategy is strengthening relationships with Australia and New Zealand, which it sees as close partners sharing common values and views on a number of issues.

"Stronger economic ties with these countries will also provide a solid platform for deeper integration with wider Asia-Pacific value chains," the paper says. The commission will "request authorisation to negotiate FTAs with Australia and New Zealand, taking into account the EU agricultural sensitivities."

The new strategy comes as New Zealand renews its own desire for closer trade relations with Europe. Prime Minister John Key will travel to Brussels later this month to meet with Donald Tusk, president of the European Council, and European Commission president Jean-Claude Juncker to push the country's case for a free trade deal.

Last month, New Zealand's government released a refreshed trade strategy emphasising a pivot to Latin America and pursuing an FTA with Europe, while continuing to build on its deepening Asia region trade relationships.

New Zealand exported $5.08 billion of goods to Europe in the year ended August 31, up from $5.01 billion a year earlier, while it imported $9.15 billion of goods in the same period from Europe, compared to $8.72 billion in 2014.

(BusinessDesk)