Historic trade deal opens new era for NZ-Gulf commerce
In October 2025, New Zealand and the Gulf Cooperation Council confirmed their agreement to enter into a Free Trade Agreement — a landmark achievement and the first such agreement between the GCC and a Pacific nation.
What the FTA covers
The agreement is expected to:
- Reduce tariffs on NZ dairy, meat, and agricultural exports to GCC member states
- Open services trade in education, professional services, and technology
- Streamline investment flows between NZ and the six GCC nations (Saudi Arabia, UAE, Bahrain, Qatar, Kuwait, Oman)
- Establish regulatory cooperation on food safety, halal certification, and technical standards
Impact on NZ-Saudi trade
New Zealand's exports to Saudi Arabia were valued at NZ$680 million in 2025. The FTA is projected to increase bilateral trade by 25-35% within three years of implementation, with the largest gains in:
- Dairy products (currently subject to 5-15% tariffs)
- Red meat (subject to seasonal quotas)
- Education services (visa and licensing facilitation)
What NZ businesses should do now
The FTA creates both immediate and medium-term opportunities. The Chamber recommends:
- Review your tariff exposure — understand which of your products will benefit from reduced duties
- Engage early — businesses that establish relationships before full implementation will have first-mover advantage
- Contact the Chamber — our GROW and LEAD members receive quarterly FTA implementation briefings
The Chamber has advocated for this agreement since 2023 and will continue to work with MFAT to ensure New Zealand businesses can fully capitalise on the opportunity.