European Union and New Zealand sign free trade deal that's expected to boost trade by up to 30%

WELLINGTON, New Zealand -- The European Union signed a free trade agreement with New Zealand on Monday that the two sides expect will increase bilateral trade by up to 30% within a decade.

New Zealand will gain up to 1.8 billion New Zealand dollars ($1.1 billion; €1 billion) in exports to the 27-country bloc every year, a government statement said.

The deal brokered over five years will cut NZ$248 million ($153 million; €140 million) a year in duties, a European Commission statement said.

“New Zealand is a key partner for us in the Indo-Pacific region and this free trade agreement will bring us even closer together. With today’s signature, we have taken an important step in making the agreement a reality,” European Commission President Ursula von der Leyen said.

Duties will be removed on 91% of New Zealand’s goods exported to the EU from the start of the agreement, rising to 97% after seven years.

The deal has yet to be ratified by the two sides' parliaments and a start date set.