NZ–EU FTA Drives $3 Billion Export Surge in Just Two Years, Outpacing Expectations

The milestone underscores the agreement’s rapid impact on economic growth, job creation, and global market expansion, Trade and Investment Minister Todd McClay announced.

New Zealand's trade relationship with the European Union is delivering record-breaking results, with exports surging by an additional $3 billion in just two years under the New Zealand–EU Free Trade Agreement (FTA). The milestone underscores the agreement's rapid impact on economic growth, job creation, and global market expansion, Trade and Investment Minister Todd McClay announced.

The figures reveal a dramatic acceleration in trade performance, positioning the European Union as New Zealand's fastest-growing major export market. Total exports to the EU reached $8.8 billion in the year ending December 2025 — a 29 percent increase, or nearly $1.9 billion more than the previous year. Just two years earlier, exports stood at $5.7 billion, highlighting the scale and speed of growth driven by the agreement.

"Because the FTA entered into force early, our exporters gained an immediate competitive edge through tariff reductions and improved market access," Mr McClay said. "On the Agreement's second anniversary, Kiwi exporters have now generated an additional $3 billion in sales — significantly exceeding forecasts and demonstrating the power of opening new markets."

A High-Impact Trade Deal Delivering Across Sectors

The surge in exports reflects broad-based growth across key industries, with both goods and services benefiting from reduced trade barriers and streamlined access to one of the world's largest and most lucrative consumer markets.

Goods exports rose by 35 percent to $6.7 billion, while services exports increased by 11 percent to $2 billion. Tourism — a critical services sector — climbed 7.3 percent to $1.1 billion, while education-related exports saw a sharp rise of nearly 18 percent, reaching $245 million.

Primary industries have been among the biggest winners, with standout gains highlighting strong European demand for New Zealand's premium agricultural products:

• Dairy exports surged 58 percent to $616 million, led by a remarkable 121 percent increase in butter exports to $276 million and a 400 percent jump in cheese exports to $51 million.

• Meat exports rose 38 percent to $1.9 billion, with sheep meat alone increasing 50 percent, reinforcing New Zealand's position as a leading supplier of high-quality protein.

• Fruit and vegetable exports grew 29.3 percent to $1.36 billion, including a dominant $1.2 billion contribution from kiwifruit — a flagship export product.

• Seafood exports increased 15.1 percent to $384 million, reflecting sustained demand in premium markets.

Industrial exports also recorded a significant leap, rising 61.3 percent to $1.44 billion — a sign that the FTA is supporting diversification beyond traditional primary sectors.

Fueling Jobs, Regional Growth, and Economic Resilience

With one in four New Zealand jobs tied to trade, the export boom is translating directly into tangible economic benefits across the country. Increased export revenues are strengthening regional economies, boosting incomes, and supporting employment in industries ranging from farming and manufacturing to tourism and education.

"This growth is not just about numbers — it's about real opportunities for New Zealanders," Mr McClay emphasized. "Stronger exports mean more secure jobs, higher wages, and more resilient communities, particularly in our regions where export industries are the backbone of local economies."

The agreement's success also comes at a critical time, as global markets face ongoing uncertainty. By diversifying trade relationships and securing preferential access to the EU, New Zealand is reducing reliance on traditional markets and building a more balanced and resilient export portfolio.

Strategic Momentum Toward Doubling Exports

The rapid gains under the FTA are seen as a key step toward New Zealand's long-term goal of doubling export value within the next decade. The agreement's early success provides a blueprint for how proactive trade policy can unlock new growth pathways and enhance global competitiveness.

"Making full use of this Agreement is vital in today's uncertain global environment," Mr McClay said. "It shows what is possible when we back our exporters and remove barriers to trade."

Beyond economic metrics, the milestone also reflects the strength of the longstanding partnership between New Zealand and the European Union — built on shared values, trust, and mutual economic interests.

"Today we celebrate not only the growth in trade, but also the deep and enduring relationship we have developed with the EU over many years," Mr McClay added. "The EU remains a trusted and vital partner for New Zealand's future."

A Model for Future Trade Success

As global competition intensifies and supply chains evolve, the New Zealand–EU FTA is emerging as a model for modern trade agreements — delivering immediate benefits, fostering sector-wide growth, and supporting sustainable economic development.

With export performance already exceeding expectations just two years in, policymakers and industry leaders alike are now focused on maximizing the agreement's full potential — ensuring that New Zealand businesses continue to expand their footprint in one of the world's most dynamic and high-value markets.