New Zealand’s free trade agreement with the UK was ratified by Britain’s House of Commons last week.
This followed the passage of comparable legislation in the NZ Parliament early last month.
The UK FTA is regarded as one of the best trade deals NZ has signed. The government has estimated it will be worth $1 billion a year to the economy and it will end all tariffs on New Zealand exports, most of them on day one.
Enabling legislation passed its third reading in the NZ parliament, but the process was more complicated at the British end, with several legislative hurdles to overcome.
There was a select committee hearing, a general debate on free trade, and a report by the British parliament’s International Trade Committee, which exonerated NZ agriculture on environmental grounds.
Ratification happened on December 1, but there now needs to be the passage of legislation to formally change or remove tariffs on NZ goods and to establish new rules of British Government procurement.
Trade experts are not expecting any last-minute trouble, saying UK Prime Minister Rishi Sunak has argued strongly for Britain to honour its international agreements.
They also note the ruling Conservative Party has a strong majority in parliament.
