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UK and New Zealand agree terms of Free Trade Agreement

By October 21, 2021No Comments

The UK and New Zealand have agreed in principle on the terms of a new free trade agreement (FTA) this week. This move forms part of the United Kingdom’s push to link with countries in the Asia-Pacific region, and to expand bilateral relations across the globe after the UK’s departure from the EU. The deal was agreed to in principle on Wednesday by Prime Minister Boris Johnson and his New Zealand counterpart Jacinda Ardern.

Tariffs are to be cut on British exports including cars, buses and clothes. Imports from New Zealand such as wine, honey, gin and lamb will also be traded easier. Total trade between the UK and New Zealand was worth £2.3bn last year, and the Department for International Trade (DIT) foresees increased trade in the coming years as a result of the FTA.

The FTA deal is the second to be struck from scratch following the finalisation of Brexit. The UK agreed a deal with Australia in principle in June 2021. The negotiating teams are now starting the necessary processes for signature of the UK-New Zealand agreement.

Secretary for International Trade, Anne-Marie Trevelyan said the deal is “a vital part of our plan to level up the country: slashing costs and red tape for exporters, building new trade routes for our services companies and refocusing Britain on the dynamic economies of the Asia-Pacific”.

Prime Minister Boris Johnson said: “This is great trade deal for the United Kingdom, cementing our long friendship with New Zealand and furthering our ties with the Indo-Pacific.”

Michael