U.K. eyes 11-nation CPTPP, signs free trade deal with New Zealand
The United Kingdom (U.K.) has signed a free trade deal with New Zealand to cut red-tapism for businesses, end tariffs on U.K. exports and create new opportunities for tech and services companies.
The ground-breaking deal was agreed during a video call between the Prime Minister of U.K. – Boris Johnson and Prime Minister of New Zealand – Jacinda Ardern. The deal has been finalised after 16 months of negotiations.
The U.K. – New Zealand trade which was worth £ 2.3 billion last year is set to grow under the deal. The deal will also make it simpler for small businesses to enter the New Zealand market. The deal will also make it easier for U.K. professionals to live and work in the New Zealand.
Speaking on the occasion, 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. It will benefit businesses and consumers across the country, cutting costs for exporters and opening up access for our workers.”
Taking it to twitter, Johnson tweeted,
.@JacindaArdern and I have agreed a new trade deal that will help both the UK and New Zealand build back better from the pandemic.
— Boris Johnson (@BorisJohnson) October 21, 2021
Our two countries share deep ties of history, culture and values, and I look forward to the next chapter in our friendship.
🇬🇧🇳🇿 pic.twitter.com/bj84WTPSuf
Jacinda Ardern said, “The United Kingdom and New Zealand are great friends and close partners. The historical connections that bind us run deep. This world-leading free trade agreement lays the foundations for even stronger connections as both countries embark on a new phase in our relationship. It is good for our economies, our businesses and our people.”
The tariffs of 10% will be removed on a huge range of U.K. goods, from clothing and footwear to buses, ships, bulldozers and excavators, giving British exporters an advantage over international rivals in the New Zealand import market. Welsh auto companies that exported £ 3.4 million of road vehicles to New Zealand last year and textile producers such as Ulster Weavers, who exported £ 1.5 million to New Zealand last year, will also benefit from this.
Edinburgh’s financial and insurance services companies will benefit from greater access to New Zealand’s market and easier digital trade and business travel. Manufacturing companies like Zip-Clip and K-form will also have removal of tariffs upto 5% on metal goods and construction products. This is a good opportunity for U.K. traders because New Zealand import market is expected to grow by 30% by 2030. At the same time, U.K. people will find it economical to buy New Zealand products.
Both sides have also committed to a mobility dialogue outside the trade agreement that will consider how people-to-people links can be deepened further.
The New Zealand trade deal follows advanced free trade agreements already struck with Australia and Japan. This will help pave the way for U.K. to join Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a free trade area of 11 Pacific nations with a GDP of £ 8.4 trillion in 2020.
