A trade deal between the UK and New Zealand looks to be imminent following a sixth round of talks.
A deal would be a big boost for exporters in the UK, especially in the gun, chocolate, clothing and car markets as tariffs look set to be dropped across a wide range of goods. UK consumers can also expect a wider range of lamb and cheaper New Zealand wine too.
Whilst the current amount of trade with New Zealand is quite small, just over £2 billion a year, it’s hoped that the deal would help to unlock access to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) – a key target for the UK.
Access to the CPTPP trading zone would enable businesses to access a £9 trillion market with nations including Canada, Japan, Chile and Mexico.
Former secretary of state for international trade Liz Truss commented in August that: “We are working round the clock to get this deal done in the coming weeks. We are both big fans of each other’s high-quality products, so this could be a huge boost that allows British shoppers to enjoy lower prices and British exports to be even more competitive.
“New Zealand and the UK are natural partners united by modern values. An agreement would reflect those ideals and is a win-win for both countries.
“It would also be an important step towards our accession to CPTPP, helping the UK gain access to 11 of the world’s biggest and fastest-growing economies across the Pacific region and opening doors to dynamic markets across the world.”