The new trade deal will eventually eliminate all tariffs on NZ exports.
New Zealand has secured a free trade agreement with the United Kingdom.
An agreement in principle was announced a short time ago.
The Government says it will bring a boost of almost $1 billion to NZ’s GDP.
It will eventually eliminate all tariffs on NZ exports.
Trade Minister Damien O’Connor says this will save NZ exporters approx. $37.8 million per year on tariff elimination alone.
The products to benefit include honey, wine, kiwifruit, onions, a range of dairy and meat products.
There will be significant increases for beef and sheep meat market access.
Prime Minister Jacinda Ardern has called the deal one of NZ’s best ever deals, which was secured at a crucial time in the covid recovery.
O’Connor says the meat deal was especially important.
“Beef volumes will increase from 12,000 tonnes to 60,000 tonnes, and for sheepmeat they will rise from 149,205 tonnes to over 164,000 tonnes, with free market access after 15 years,” O’Connor said.
As forecast by Farmers Weekly, dairy access will be greatly improved, with tariff-free access assured for butter and cheese after five years, in line with a pledge made to Australia.
Other dairy products will only have to wait three years.
Wine, honey and onions will get tariff-free access from day one.
Apples get this access after three years.
The agreement was praised by the British Prime Minister Boris Johnson.
“This new trade deal is the cherry on the top of a long and lasting partnership between the United Kingdom and New Zealand,” Johnson said.
“It is good for both our economies, boosting jobs and growth as we build back better from the pandemic. We already share deep ties of history, culture and values, and I look forward to the next chapter in our friendship.”
