New Zealand's EU trade deal has been running since May 2024, delivering an extra $3 billion in exports. With Australia's own EU agreement nearly finalised, the details of how the two deals compare are now public.
New Zealand's free trade agreement with the European Union has been in force since May 2024, making it one of the few FTAs where actual results can now be measured rather than projected. Trade Minister Todd McClay said last month that exports under the deal had surged by $3 billion — a figure worth noting as Australia's own EU trade agreement moves toward ratification (expected late 2027).
Australia's deal, signed more recently, is not expected to come into force until late 2027, assuming ratification proceeds on schedule. Parts of the underlying treaty remain non-public. But MFAT has published a detailed sector-by-sector comparison of the two agreements, and the outcomes for New Zealand's agricultural exporters are notably stronger.
Beef: Australia has the larger quota, on paper
Australia secured overall beef access of 35,000 tonnes under its EU deal, comprising a new FTA quota of 30,600 tonnes — split between grass-fed beef at zero tariffs and a broader beef category at 7.5 percent — alongside its existing WTO quota at zero tariff.
New Zealand's overall beef access comes to 11,466 tonnes. Under the FTA, 10,000 tonnes enters at 7.5 percent tariff, phased in over seven years, while the existing WTO quota of 1,466 tonnes also attracts 7.5 percent tariff. So the headline quota figure favours Australia — though both countries face tariff rates within the FTA window.
Sheep meat: a large gap in NZ's favour
Sheep meat is where the contrast is starkest. New Zealand's total access is 175,769 tonnes: 38,000 tonnes at zero tariff under the FTA plus 125,769 tonnes of existing WTO quota also at zero tariff. Australia receives 30,581 tonnes total — 25,000 under its FTA quota and its existing WTO quota of 5,581 tonnes, both at zero tariff.
That means New Zealand's sheep meat access is nearly six times larger than Australia's in volume terms, reflecting the country's position as the world's second-largest sheepmeat producer and the EU's long-standing preference for the product.
Dairy: NZ's butter access substantially higher
The butter picture is similarly favourable for New Zealand. Australia secured 5,000 tonnes of butter access with tariff elimination over three years. New Zealand received 36,000 tonnes overall: 15,000 tonnes under the FTA at 5 percent of the standard EU tariff, and 21,000 tonnes of existing WTO quota which also drops to 5 percent of standard tariff. Tariff elimination on other dairy fats and oils applies for both countries.
For milk powder, Australia has 8,000 tonnes of skim milk powder access and tariff elimination over three years for whole milk powder. New Zealand receives 15,000 tonnes for all milk powder categories at 20 percent of the standard EU tariff.
Cheese access is the one area where Australia's outcome appears more straightforward — it gets tariff elimination over three years, while New Zealand's comparison table in the MFAT document is truncated in the available summary.
Why the gap matters
New Zealand's agricultural exporters are heavily dependent on European access for high-value products, particularly for sheep meat and butter. The EU is a price-sensitive market for these goods, and quota volumes at zero or reduced tariff matter significantly for profitability. The longer WTO quota that New Zealand carries — a legacy of previous trade arrangements — also remains relevant because it is not eroded by the FTA phase-in.
The comparison also illustrates a broader dynamic: smaller trading nations that move earlier can lock in better access before the EU calibrates subsequent deals with similar countries. MFAT's sector-by-sector comparison shows New Zealand's three-year head start and the deal negotiated under the previous Labour government delivered meaningful structural advantage in several key sectors.
Both agreements contain the standard "most favoured nation" provision: if either party later offers a better deal to another country, those improved terms automatically flow through. This means Australia's deal will effectively inherit some of New Zealand's better terms over time — but the initial access differentials, particularly in sheep meat and butter, are not trivial.
This article is for general information only and is not personalised financial advice. Seek advice from a licensed financial adviser (registered on the FSPR) for guidance specific to your situation.