How can UK businesses take advantage of new trade relations with New Zealand?
The UK has signed a historic trade deal with New Zealand that is estimated to deliver an additional £800 million in trade in years to come.
The new free trade deal with New Zealand is expected to deliver a 60 per cent boost in trade between the two nations – opening up new opportunities for UK businesses.
Completion of this deal brings the number of new UK independent trade agreements to 68 – this is almost twice as many deals as before Brexit when the UK had 35 in place.
Despite Brexit, the UK still enjoys a free trade and cooperation agreement with the EU and its 27 member states, which gives it access to a further tariff-free area of nearly a hundred nations.
Why is the UK’s trade deal with New Zealand important?
The Government has said that the latest agreement should bring the UK closer to entry to the much larger Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
This is a free trade alliance comprised of a number of the countries on the Pacific rim, some of whom the UK has already struck deals with.
Although the UK has already formally applied to become the latest member of the CPTPP, it is still negotiating its position within the trade partnership.
The most recent data from 2019 showed that exports of goods and services to CPTPP nations accounted for 8.4 per cent of all UK exports – equivalent to £58 billion of trade. It is predicted that entry to the group of nations could significantly boost UK trade in the Pacific Rim.
How can UK businesses capitalise on new trade arrangements with New Zealand?
The agreement “will see red tape slashed for the UK’s world-leading tech, creative and services companies”, according to the Government.
Although there are some fears about the impact of the deal on UK agriculture, many other sectors should find that trade with New Zealand is now easier and simplified, but most importantly less expensive.
With the deal freshly signed, now would be a good time for UK businesses with an interest in the New Zealand market to start taking action before competitors have a chance to break into the region.
Companies with trade ambitions in New Zealand should seek professional advice to see how they can make the most of the opportunities on offer.
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