New Zealand has recently signed a trade agreement with Costa Rica, Iceland, and Switzerland, emphasising sustainable exports. This agreement, known as the Agreement on Climate Change, Trade, and Sustainability (ACCTS), was finalised during a ceremony at the Asia-Pacific Economic Cooperation (APEC) summit in Peru on November 16, 2024.
“The Agreement on Trade and Sustainability (ACCTS) between Costa Rica, Iceland, and Switzerland was concluded in July of this year and opens up significant economic opportunities for New Zealand businesses by eliminating tariffs on key sustainable goods and services,” Trade and Agriculture Minister Todd McClay said.
“This agreement removes tariffs on key exports, including 45 wood and wool products—two sectors that are vital to achieving our goal of doubling New Zealand’s exports by value in ten years.”
According to McClay, this new preferential access strengthens New Zealand’s competitive position in international markets and supports Kiwi exporters in achieving success abroad.
It will also lower costs for consumers by eliminating tariffs on hundreds of additional products, including insulation materials, recycled paper, and energy-efficient items like LED lamps and rechargeable batteries.
“ACCTS is about opening new markets, growing domestic jobs, and adding value across the economy. As more countries join, the economic benefits will only grow.”
The agreement also establishes the first international guidelines on eco-labelling, ensuring that these labels do not become on-tariff barriers (NTBs). Additionally, it further supports New Zealand’s renewable energy sector by implementing rules to prevent fossil fuel subsidies.
McClay emphasised that expanding New Zealand’s trade relationships is a crucial element of the strategy to enhance the economy, boost incomes for Kiwis, and generate jobs.