The International Trade Secretary has signed the UK-New Zealand free trade deal with New Zealand minister Damien O’Connor in London
The UK has signed a far-reaching trade deal with New Zealand that will remove trade barriers on a huge range of UK goods and services and provide new opportunities for British businesses.
The deal has been signed by International Trade Secretary Anne-Marie Trevelyan and New Zealand Minister for Trade and Export Growth Damien O’Connor. After reaching agreement in principle last October negotiators have worked intensely to finalise the agreement.
The UK-New Zealand trade relationship was worth £2.3 billion in 2020 and is now expected to increase by almost 60%, boosting our economy by £800 million and increasing wages across the UK.
Under the new deal, tariffs will be eliminated on all UK exports to New Zealand, including current tariffs of up to 10% on clothing and footwear, 5% on buses and up to 5% on ships, bulldozers and excavators.
Smaller businesses will also find it easier to break into the New Zealand market as a result of modernised customs procedures, such as digital documents and customs clearance as quick as six hours.
Other UK benefits include:
UK consumers will also have access to a standalone consumer chapter, while high-quality products that British shoppers love could become more affordable, including Marlborough Sauvignon Blanc, Manuka Honey and kiwi fruit.
This deal is the most advanced agreement New Zealand have signed with any nation bar Australia and is part of our ambitious strategy to deepen trade ties with like-minded partners and create a more predictable, free and fair framework for UK businesses.
It is one of our greenest deals ever, confirming commitments to the Paris agreement and Net Zero. It will liberalise tariffs on the largest list of environmental goods in any FTA to date and encourage trade and investment in low carbon services and technology.
International Trade Secretary Anne-Marie Trevelyan said:
The agreement is one of a series of advanced deals with leading nations that will update trade rules for the digital age, building on the groundbreaking Digital Trade Principles agreed by G7 countries under the UK’s Presidency.
It is also a vital part of our plan to build new trade routes for services, which the UK excels at, and to refocus Britain on the faster-growing parts of the world in the Asia-Pacific region, including accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a vast free trade area populated by half a billion people and with a joint GDP of £8.4 trillion in 2020.
Vincent Keaveny, Lord Mayor of the City of London, said:
Mike Cherry, FSB National Chair, said:
Background