New Zealand, Saudi Arabia agree to advance stalled FTA

New Zealand and Saudi Arabian leaders on Thursday appeared to have overcome stumbling blocks towards a long-awaited free trade agreement between New Zealand and the Gulf Cooperation Council (GCC).

New Zealand Trade Minister Todd McClay, who is currently visiting Saudi Arabia, said Thursday that he had held talks with Saudi Minister of Commerce and Investment Dr. Majid bin Abdullah Al Qasabi.

The two ministers had agreed to work toward early completion of the GCC-New Zealand free trade agreement (FTA).

"This is an extremely pleasing outcome from my mission to Saudi Arabia. We can now see a way forward towards the completion of the FTA," McClay said in a statement from his office."

"The next step is for GCC countries to meet and for my officials to get together with the GCC Secretariat, as well as member countries, to finalize agreement."

The FTA has been under negotiation since 2009.

Last week New Zealand Prime Minister John Key held talks at the United Nations in New York with Saudi Arabian Deputy Prime Minister Prince Mohammed Bin Nayef Bin Abdulaziz Al Saud on the ongoing negotiations.

Radio New Zealand reported that Key said after the talks that he thought the trade deal was gathering momentum and could be completed next year.

Last year, Key visited the Gulf Cooperation Council states, and said Saudi Arabia was going to be the stumbling block to the deal.

It is believed that the Saudi government took umbrage over New Zealand's ban on exports of live sheep -- a trade in which Saudi businesses had invested heavily.

However, a controversial New Zealand government-funded agri-hub, including live New Zealand sheep, established in Saudi Arabia in 2013 had helped clear the way for a free trade deal, Key said.

Two-way goods trade with the GCC region, New Zealand's sixth largest trading partner, was worth more than 3 billion NZ dollars (2.18 billion U.S. dollars) annually, which included more than 1 billion NZ dollars (728.5 million U.S. dollars) of trade with Saudi Arabia.

New Zealand exported approximately 5,000 tonnes of beef to Saudi Arabia each year and hosted around 3,000 Saudi students.

"There is clear enthusiasm about the potential for greater cooperation between our highly complementary economies, especially in education and food security," said McClay.

The Gulf Cooperation Council, comprising Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Bahrain, and Oman, is New Zealand's sixth largest export partner, with annual exports worth over 1.7 billion NZ dollars (1.24 billion U.S. dollars). Endit