New Zealand and U.K. Urge EU to Boost Trade with Pacific Bloc Amid U.S. Tariffs
New Zealand and the United Kingdom are urging the European Union to deepen trade ties with a major Pacific alliance, as U.S. President Donald Trump’s tariffs weigh on the global economy, New Zealand Finance Minister Nicola Willis said.
Speaking to POLITICO after Brussels signaled openness to talks with members of the 12-nation Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) — which includes Canada, Japan, Mexico, Australia, and others — Willis welcomed the move, saying it serves the interests of both the U.K. and New Zealand.
“Continuing to be supporters and reinforcers of the rules-based trading system is in the interest of both of our countries as members of the CPTPP,” she said in London on Tuesday, following discussions with U.K. Chancellor Rachel Reeves earlier in the week. “Seeking to work with like-minded countries to reinforce that rules-based approach is in our interests.”
EU–CPTPP Talks Planned
Willis confirmed that EU and CPTPP negotiators will meet later this year to seek “alignment” between Brussels’ existing trade agreements with individual CPTPP members and the Pacific-wide pact.
The aim, she said, is to “reinforce” those arrangements, given a shared belief that consistent, enforceable, rules-based agreements are in the common interest of both sides.
New Zealand Prime Minister Christopher Luxon has been advocating closer EU–CPTPP cooperation since early this year, raising the proposal with European Commission President Ursula von der Leyen in April.
Tariff Pressures from Washington
The push for closer EU–Pacific ties comes as the U.S. imposes new tariffs. On August 1, the White House introduced a 15 percent tariff on New Zealand — matching rates applied to the EU — as part of Trump's so-called “Liberation Day” measures targeting multiple countries.
Willis acknowledged that Washington's tariff formula presents challenges for smaller nations with trade surpluses with the U.S. “That blunt reality that we are in surplus is a difficult one to overcome,” she said.
New Zealand Trade Minister Todd McClay is set to travel to Washington this month to negotiate in hopes of reducing tariffs on New Zealand exports. However, Willis cautioned, “That doesn’t mean that we then have expectations that the tariff rate will change overnight.”
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