UK and New Zealand sign free trade deal
Britain and New Zealand have signed a free trade deal, which the UK government said would boost bilateral trade by 60% by eliminating tariffs, cutting red tape and enabling freer movement of professional workers.
Most business leaders welcomed the deal, which was agreed in principle in October and follows on the heels of a similar agreement with Australia, but the National Farmers’ Union (NFU) said it would lead to unfair competition in their sector.
The trade minister, Anne-Marie Trevelyan, forecast that the deal would add £800m to the British economy over the next decade.
“Our trade with New Zealand will soar, benefiting businesses and consumers throughout the UK and helping level up the whole country,” she said.
Tariffs of up to 10% on clothing and footwear, 5% on buses and up to 5% on ships, bulldozers and excavators will be eliminated, she said.
William Bain, head of trade policy at the British Chambers of Commerce, joined the head of the Federation of Small Businesses, Mike Cherry, and the Lord Mayor of London, Vincent Keaveny, in describing the deal as an opportunity for UK businesses to provide services on an equal footing with businesses based in New Zealand.
“The agreement will also boost trade in environmental goods and services – essential for the transition to net zero,” Bain added.
However, the NFU’s president, Minette Batters, said the elimination of tariffs on agricultural products would expose “sensitive sectors like beef and lamb, dairy and horticulture” to unfair competition.
“Once again, there appears to be extremely little in this New Zealand trade deal to benefit British farmers. UK farm businesses face significantly higher costs of production than farmers in New Zealand, and margins are likely to tighten
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