Germany backs EU and NZ free trade agreement

The Herald reports:

German Chancellor Angela Merkel says she will back a New Zealand push for a free trade agreement with the European Union – words that will be music to Prime Minister John Key’s ears.

Speaking to media during her visit to Auckland today, Dr Merkel said Germany would champion New Zealand’s cause.

“I think we should also come out in favour of a free trade agreement between the EU and New Zealand. New Zealand has such agreements with China and other areas of the world.

“As a member of the European Union, Germany is very much championing, despite the great distance that separates us, to foster our trade relationships, to bring forward trade with the European Union.”

She said she was impressed by New Zealand’s growth, saying it was because the country was open minded and encouraged free trade.

Mr Key said Germany was already a critical trade partner and two-trade was now larger than with the United Kingdom. However, there was scope to do more and he had spoken about NZ’s aspirations for a free trade agreement with the EU.

Interesting that Germany is now a bigger trading partner than the UK.

An FTA with the EU would be great as they are highly protectionist. But it would require consent of all EU countries and I can’t see France agreeing.

Two way trade with the EU is around $12 billion a year.