The EU and New Zealand have a number of common goals and are like-minded partners, with positions aligned on most global issues. Both support democracy, the rule of law and human rights; and are active supporters and players in multilateral organisations such as the United Nations and the World Trade Organisation (WTO). They also have shared interests in tackling key global challenges such as climate change, sustainable development, preserving the environment, and also humanitarian aid and fight against terrorism.

There are a number of other policy areas where the EU and New Zealand work towards joint goals. These include, inter alia, education, fisheries, transport, sustainable energy, or cultural cooperation.

The EU and New Zealand engage in a regular political dialogue, including frequent consultations at ministerial senior officials' and parliamentary levels.

Most recently, Trade Commissioner Cecilia Malmström visited New Zealand in June 2018. Together with her New Zealand counterpart, David Parker, they opened free trade negotiations (more detail below). Earlier in April 2018, Deputy Prime Minister and Foreign Minister Winston Peter met High Representative and Vice President Federica Mogherini in Brussels. This was the first meeting between the two counterparts. Ahead of it, Mr Peters said, “Our shared values and commitment to the global rules-based system make the EU an important partner for New Zealand in today’s increasingly uncertain world”. HR/VP Mogherini and Foreign Minister Peters updated each other on their bilateral relations and exchanged views on recent developments at the multilateral and regional level.

Additionally, Internal Market, Industry, Entrepreneurship and SMEs Commissioner Elżbieta Bieńkowska visited NZ in March 2018.

The last meeting of EU and New Zealand heads of government or state was in 2017. On 14 November, Prime Minister Jacinda Ardern and the President of the European Council Donald Tusk met in Manila where they discussed the common political and trade agenda.

New Zealand is an open economy and depends heavily on international trade. The EU is New Zealand's third-largest trading partner, and the second largest source of FDI in New Zealand.

Recent years have seen major challenges to the rule-based international trade system. The European Union and New Zealand are deeply committed to strong international trade rules. A rules-based system helps to prevent unwanted and unexpected surprises at the border, such as when goods are denied entry or extra costs applied. It also means the EU and New Zealand will work hard to reconcile any disagreements over trade that may arise. This is particularly beneficial to an exposed export-oriented economy like New Zealand.

Exports of goods and services account for around 54% of New Zealand's GDP. Its principal export industries are agriculture, horticulture, fishing, forestry and mining, which make up about half of the country's exports. Its major export partners are Australia, China, and the EU. The service sector is the largest sector in the entire domestic economy, followed by manufacturing and construction, and then farming and raw mineral extraction. Tourism plays a significant role in New Zealand's economy, earning NZ$9.6 billion or 15.4% of New Zealand's foreign exchange earnings, and contributing almost 9% of New Zealand's GDP.

New Zealand has negotiated a number of preferential trade agreements including an FTA with China (2008), the first such agreement China has signed with a developed country. Other agreements include Australia (1983), Thailand (2005), Singapore (2001), and Hong Kong (2011). New Zealand was also one of the four founding members of the Trans-Pacific Strategic Economic Partnership Agreement ("P4") launched in 2005, with Brunei, Chile and Singapore. This agreement was expanded as the Trans-Pacific Partnership (TPP) by including Australia, Canada, Malaysia, Mexico, Peru, the United States, Vietnam, and Japan. The new TPP agreement was signed in February 2016 in Auckland. Following the withdrawal of the United States from the TPP, the agreement was revised and signed by the remaining 11 signatories in 2017 as the Comprehensive and Progressive Agreement on Trans-Pacific Partnership (CPTPP). New Zealand is participating in the negotiations for the Regional Comprehensive Economic Partnership (RCEP), a preferential trade agreement that brings together the 10 ASEAN Member States and their FTA partners (Australia, China, India, Japan, the Republic of Korea and New Zealand): a total of 16 partners. New Zealand is also currently negotiating with members of the Pacific Alliance, which includes Chile, Colombia, Mexico, and Peru.

Trade in goods

In the year ended March 2018, the EU was ranked as New Zealand's third-largest trading partner in goods (after China and Australia), New Zealand being the EU's 50th largest partner. Total trade in goods between the EU and New Zealand amounted to around €9bn (NZ$15.5). New Zealand's exports to the EU are largely dominated by agricultural products, while EU's exports to New Zealand are focused on manufactured goods.

Over the years there have been numerous agreements between the EU and New Zealand designed to improve and ease trade. Agreements may be sector specific (meat) or thematic (mutual recognition).

Trade in services

The total trade in commercial services between the EU and New Zealand amounted to around €6.6 billion (NZ$ 6.7bn) for year ended March 2018.

• EU commercial services exports to New Zealand: NZ$3.1 billion (year ended March 2018)
• EU commercial service imports from New Zealand : NZ$3.6 billion ( year ended March 2018)

Foreign Direct Investment

For the year ended December 2017, the EU was the second largest source of FDI in New Zealand after Australia and ahead of the US. FDI from the EU accounted for around 11% of investment into New Zealand. Australia accounted for 52 % of FDI to New Zealand while the US contributed around 8%.

• EU foreign direct investment stocks in New Zealand: NZ$11.9 billion as at December 2017
• NZ foreign direct investment stocks in the EU: NZ$3.1 billion as at December 2017

New Zealand was discovered and settled by Polynesian explorers around the end of the 13th century, but New Zealand also has strong ties with Europe. European knowledge of New Zealand dates to the Dutch explorer Abel Tasman's brief visit to New Zealand in the mid 1600s, and Captain Cook's circumnavigation and mapping of New Zealand's coastline in the mid 1700s.

European settlement and visits increased from the early 1800s, and New Zealand was brought into the British Empire following the signing of the Treaty of Waitangi in 1840. Throughout this period of European contact, Britain has remained New Zealand's strongest European ally, but there is also a long history of settlement from other European countries. These European ties have been an important part of New Zealand's social and political development.

Essential lines of official communication were established between New Zealand and the then European Community in 1960 when a New Zealand Ambassador was accredited to Brussels and the European Commission.

The importance of informal and flexible meetings between New Zealand and the European Community soon became evident and since 1975 meetings have been convened regularly. These meetings allow the political leaders to discuss the state of the relationship and share information on international developments of mutual interest in a free and frank manner. New proposals or ideas are often discussed and then, the respective officials given a mandate to examine and report back.

Reinforcing ministerial dialogues are periodic visits to New Zealand by EU Commissioners and visits to Brussels by New Zealand Ministers. In 2011, José Manuel Barroso made the first visit by a President of the European Commission to New Zealand in over 20 years.

In May 1996 the relationship between the EU and New Zealand reached a turning point when New Zealand's Foreign Minister of the time, Don McKinnon, called "for some overarching agreement or arrangement with the EU to tie in our various consultations arrangements". Considerable thought in the ensuing years was given to the nature of such an agreement. Three years later, in 1999, the text of the Joint Declaration on Relations between the European Union and New Zealand was signed in Strasbourg. This concrete sign of the deepening of the relationship paved the way for closer cooperation on a broad range of issues. Most notably, it provides a solid basis for enhanced political and security cooperation with regard to the Asia-Pacific region, an area where both the EU and New Zealand have a strong interest to ensure stability and prosperity.

The European Union's Delegation in Canberra was accredited to New Zealand in 1984. Following the New Zealand Government's invitation, the EU opened a Delegation in Wellington in May 2004. The Delegation keeps the European Union institutions abreast of significant happenings in New Zealand and facilitates the operation and development of bilateral cooperation.

Given their shared interests and common approach, the European Union and New Zealand regularly consult and continuously cooperate on matters of joint concern such as climate change, development assistance, trade and investment liberalisation, scientific research and humanitarian aid.