Monday, the European Union and New Zealand signed a free trade agreement, which is expected to increase bilateral trade by up to 30% within a decade.

The government stated that New Zealand will gain up to 1.8 billion New Zealand dollars ($1.1 billion; €1 billion) in exports to the EU very year.

The European Commission says that this deal will cut NZ$248 million ($153 million; €140 million) a year in duties.

European Commission President Ursula von der Leyen 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.”

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.