New Zealand inks ‘sustainable’ trade deal with Switzerland, Costa Rica and Iceland

SYDNEY (Reuters) – New Zealand signed a trade deal on Saturday with Switzerland, Costa Rica and Iceland to remove tariffs on hundreds of sustainable goods and services, in a move Wellington says will boost the country’s export sector.

The Agreement on Climate Change, Trade and Sustainability (ACCTS) was signed at a ceremony during the Asia-Pacific Economic Cooperation (APEC) in Peru on Saturday after being struck in July, Trade and Agriculture Minister Todd McClay said in a statement.

“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 10 years,” McClay said.

It will also reduce costs for consumers, removing tariffs on hundreds of other products, including insulation materials, recycled paper, and energy-saving products such as LED lamps and rechargeable batteries.

The deal prioritised New Zealand’s “sustainable exports”, he said, amid a roll back by the country’s centre-right government of environmental reforms in a bid to boost a flailing economy. Exports make up nearly a quarter of New Zealand’s economy.

(Reporting by Sam McKeith in Sydney; Editing by Sandra Maler)