UK signs 'ground-breaking' free trade deal with New Zealand eliminating export tariffs

The United Kingdom and New Zealand have entered into an agreement on a free trade deal, which the UK government believes will benefit both consumers and companies in both countries. This comprehensive trade deal with New Zealand will open new businesses, eliminate tariffs on UK exports, and will increase the opportunities to establish new markets for IT and services firms. As per a press release from the UK government, this trade deal will be simpler for UK professionals to reside and work in New Zealand. 

Following 16 months of discussions by Department for International Trade officials, UK Prime Minister Boris Johnson and New Zealand Prime Minister Jacinda Ardern have agreed to this agreement in a video conversation on 20th October. The UK administration believes it would pave the way for countries like Canada and Japan to join a trading club. As per the release, Prime Minister Boris Johnson said, “This is a great trade deal for the United Kingdom, cementing our long friendship with New Zealand and furthering our ties with the Indo-Pacific.” 

The release further reads that since last year, trade between the UK and New Zealand was worth approximately £2.3 billion, and it is expected to increase under the new agreement. Over 10 % tariffs on UK exports will be eliminated on a wide range of British goods, from clothing to ships, providing the British exporters with an advantage to compete over international parties in the New Zealand import sector, which is anticipated to expand by around 30% by the year 2030. 

Outside of the trade deal, both parties have agreed to have a mobility conversation to discuss how people-to-people ties may be strengthened in the future. These improved business travel plans will help UK employees to operate more freely in New Zealand.  

UK companies benefited from UK- New Zealand free trade deal

Additionally, increased access to New Zealand's marketplace, as well as simpler digital commerce and business travel, would help Edinburgh's financial and insurance services firms. The elimination of tariffs would assist Welsh automakers who shipped £3.4 million worth of road cars to New Zealand last year. 

Wrightbus of Ballymena, Northern Ireland, will profit from the elimination of a 5% duty on buses. While, textile manufacturers like Ulster Weavers, who shipped £1.5 million to New Zealand last year, will profit from the elimination of tariffs of up to 10%. 

On the other hand, according to Labour and the National Farmers Union (NFU), The agreement may harm UK farmers and undermine food standards. Furthermore, as per BBC, Anne-Marie Trevelyan, the Secretary of State for International Trade, claimed it provides possibilities in both directions for tremendous sharing of food and that British farmers need not be concerned. 

(Image: AP)