The UK Agrees on a Free Trade Deal with New Zealand
Many believe the long-awaited free trade agreement between the UK and New Zealand will help customers and companies in the UK, lower tariffs, reduce the bureaucracy associated with exporting goods, and bring many other benefits. Come read our blog to learn more.
The UK has agreed on a historic free trade deal with New Zealand. Experts say the deal will benefit consumers and businesses in the UK, facilitating growth for British exporters and small businesses, cutting tariffs and reducing the bureaucracy associated with exporting goods, and giving citizens the opportunity to live and work in New Zealand. The signing of the deal, which happened in October, marks the 63rd country the UK has succeeded in establishing a trade deal with since leaving the European Union (EU).
A British Advantage in New Zealand’s Growing Import Market
While only a small percentage of the UK’s trade is done with New Zealand (just 0.2%), the new trade deal agreed between the two countries will be beneficial to British businesses, particularly those looking to expand to this region of Australasia.
In 2020, UK-New Zealand trade was valued at £2.3 billion. Under the new trade deal, experts expect this value to rise, even though New Zealand is not currently a key target for many UK exporters. The deal will see the removal of key barriers to trade, such as tariffs and red tape, which will make it easier for UK small businesses to break into this market. It will also foster the UK’s access to New Zealand’s advanced tech and services companies. UK goods such as clothing, ships and bulldozers will see a removal of tariffs, bestowing an advantage to British exporters over competing international exporters in New Zealand’s growing import market, which is predicted to grow by 30% over the next decade.
A Step Towards Joining the CPTPP?
While the UK hopes that the trade deal will boost UK exporters and small businesses, by its government’s own estimations, the deal will not likely increase the country’s economic growth. However, it will potentially be an important step towards joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade partnership that includes members such as Australasia, Canada, Mexico, and Japan, among others.
The UK has already secured deals with many members of the CPTPP and hopes that this new deal with New Zealand will bring it one step closer to joining the bloc.
Learn More with Export Portal
At Export Portal, we are dedicated to communicating the latest industry updates to help businesses owners navigate the changing landscape of the trade sector. Read more on our blog about other recent trade deals the UK has secured, such as the ones with Turkey and Japan.
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