The UK is nearing an agreement in principle on a free trade deal with New Zealand following the sixth round of discussions between the two countries.
International Trade Secretary Liz Truss said that “great progress” had been made in the most recent talks, which ran from July 19-30.
Ms Truss met with her New Zealand counterpart Damien O’Connor for a series of trade talks between 19 and 30 July, for a new free trade deal that the parties are aiming to strike next month.
A statement from Ms Truss, which appeared on Twitter, emphasised the shared values, long history and commitment to free trade between the UK and New Zealand.
“I want a modern agreement that pushes new frontiers in areas like green and digital trade,” she said.
Trade between the two countries was worth £2.3bn in 2020. The negotiations could see the lifting of tariffs on goods like New Zealand wine and McVitie’s digestive biscuits.
It is also hoped that the deal will help speed up the UK’s admission to the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), which it applied to join in January.
On admission to the £9 trillion free trade area of 11 Asia-Pacific nations, the partnership would cover half a billion people across the two continents, Ms Truss said.
Eleven countries including Australia, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam are members of the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP).
“Membership would open up new opportunities for our great British businesses, farmers and services, giving them access to some of the largest and fastest-growing markets in the world,” Ms Truss added.
The Department for International Trade also claims the deal will enable SMEs to export more goods and services to New Zealand.
The DIT also said that Ms Truss and Mr O’Connor also discussed how the two nations could tackle climate change.
The move comes after the UK and Australia signed a trade agreement in principle in June. That was the UK’s first from scratch since Brexit, aiming to reduce tariffs on a range of goods – from cars, dairy products and meat to confectionery, ceramics and machines.
However, the New Zealand deal has re-stoked tensions with UK farmers, who are still smarting from the Australia deal.
The agricultural sector has argued that tariff-free trade with countries like New Zealand could see UK domestic produce undercut by cheap imports, leading to a lowering of environmental and animal welfare standards.
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