WELLINGTON -- The New Zealand parliament on Thursday overwhelmingly voted to ratify a bill seeking to implement New Zealand's obligations under the New Zealand and European Union Free Trade Agreement (NZ-EU FTA).

The European Union Free Trade Agreement Legislation Amendment Bill was passed at its second reading, which enabled the NZ-EU FTA to come into force on May 1.

The EU, which is New Zealand's fourth-largest trade partner, has completed its ratification processes, and the agreement has been signed off by the European Parliament and Council.

The benefits of the deal include duties removed on 91 percent of New Zealand's goods exports to the EU, rising to 97 percent after seven years, covering kiwifruit, wine, onions, apples, honey, fish, seafood and other horticultural products, according to the FTA.

Tariff savings will reach 100 million NZ dollars (60.44 million US dollars) per year on New Zealand exports to the EU, said Minister for Trade and Agriculture Todd McClay.

Thursday's ratification process by the New Zealand parliament was months earlier than expected, which would see tariff savings of 43 million NZ dollars (26 million US dollars) for kiwifruit exporters, and 3 million NZ dollars (1.81 million US dollars) for onion exporters this season, McClay said, adding that the early entry into force instead of July or August would benefit much of this year's kiwifruit and onion exports.

"The FTA will level the playing field for Kiwi businesses, increase the resilience of our economy, and contribute to the government's target of doubling our export value in 10 years," McClay said, adding that once in force, over 70 percent of New Zealand's exports will be covered by the FTA network, meaning free and fairer market access for New Zealand exporters.

Negotiations on the NZ-EU FTA concluded on June 30, 2022, with the agreement signed on July 9, 2023 in Brussels.