Wellington, July 5 : New Zealand Prime Minister Chris Hipkins will travel to Brussels on Friday to witness the signing of an Free Trade Agreement (FTA) with the European Union (EU).

The FTA will deliver immediate tariff savings on New Zealand exports to the EU of about NZ$100 million ($61 million) a year when it enters into force, Hipkins said on Tuesday.

Modelling suggests exports to the EU will increase by up to NZ$1.8 billion per annum and add up to NZ$1.4 billion to New Zealand's GDP per year once fully implemented.

"This is an important milestone towards entry into force of this high-quality and historic free trade agreement, " Hipkins said.

New Zealand will also sign the Horizon Europe Association Agreement.

Horizon Europe is the EU's main research and innovation framework and funding platform, Hipkins said, adding that it is also the largest multilateral research program in the world.

Associating with Horizon Europe will provide new opportunities for New Zealand scientists to collaborate with European partners on research to address major global challenges such as climate change, energy and health, he said.