The boss of a leading UK business organisation has praised the country’s new trade deal with New Zealand.
Mike Cherry, Federation of Small Businesses National Chair, said: “New Zealand has long been a priority market for UK’s small exporters – more than a quarter of which already sell there – and we welcome efforts to build on existing trade ties that go back many decades.
“The inclusion of a dedicated small business chapter within this deal is very welcome, and we look forward to working with DIT to help firms of all sizes maximise this opportunity, through the myriad ways free trade agreements can benefit their business.”
The main points of the deal
The deal, agreed by Prime Minister Boris Johnson with New Zealand PM Jacinda Ardern, will cut red tape for businesses, end tariffs on UK exports and create new opportunities for tech and services companies while making it easier for UK professionals to live and work in New Zealand.
It comes after 16 months of talks by Department for International Trade negotiators and follows trade agreements already struck with Australia and Japan and helps pave the way for the UK to join the Trans-Pacific Partnership (CPTPP), a free trade area of 11 Pacific nations with a GDP of £8.4 trillion in 2020.
The deal will see tariffs as high as 10 per cent removed on a huge range of UK goods, from clothing and footwear to buses, ships, bulldozers and excavators, giving British exporters an advantage over international rivals in the New Zealand import market - a market which is expected to grow by around 30 per cent by 2030.
High-quality New Zealand products, from Sauvignon Blanc wine to Manuka honey and kiwi fruits, could be cheaper to buy.
Business travel will be made easier says Government
The Government says UK workers will benefit from improved business travel arrangements and professionals such as lawyers and architects will be able to work in New Zealand more easily, allowing UK companies to set up shop and bring the best British talent with them.
Dominic Goudie, Head of International Trade, the Food and Drink Federation, said: “Food and drink manufacturers welcome the news that the UK has agreed in principle a trade deal with New Zealand – an important partner for UK food and drink, with trade in our sector’s products worth more than £661m in 2020.
“Our manufacturers will benefit from an ambitious trade deal with New Zealand that removes a range of tariffs that currently constrain exports. Significant growth opportunities exist as UK production becomes more competitive in the New Zealand market.”
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