New Zealand Targets Trade Deals With Brazil and Europe Within Five Years
The pledge to negotiate a trade deal with the EU could eventually alter trade flows between the Eurozone and New Zealand. If successful, increased EU imports of NZ goods would weaken EUR/NZD as demand for NZD rises. However, the European Union's complex trade negotiation process and protectionist agricultural policies make a quick agreement unlikely.
- ▼ EU trade deal could shift trade balance in NZ's favor
- ▲ EU agricultural protectionism may stall or water down any deal
- ▲ Euro strength driven by ECB policy could offset NZD gains
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Will the EUR/NZD pair be directly affected by trade talk pledges?
Unlikely in the short term, but if negotiations show progress, the pair could trend lower over the long term as NZD demand increases. However, the EU's internal consensus requirements make a swift deal improbable.
What is the outlook for EUR/NZD if a deal is reached?
A comprehensive free trade agreement would likely bolster NZ exports to the EU, weakening EUR/NZD. But the net effect depends on the terms and whether the NZD's gain is offset by other Eurozone factors.