The United Kingdom has reached a free trade deal with New Zealand. The new deal will eliminate tariffs for goods between the countries, cut costs for exporters and importers, and open up the job markets in both countries.
The post-Brexit deal is one of many the UK is eyeing, with the government hoping this one will act as a step towards a trade club with the likes of Canada and Japan.
After 16 months of negotiations, UK Prime Minister Boris Johnson and New Zealand Prime Minister Jacinda Arden agreed to the deal this week in a video call.
The new deal means that tariffs will be removed on goods going to and from both countries. UK goods like clothing, ships and bulldozers will go to New Zealand tariff-free, and from New Zealand to the UK will come goods like wine, honey and kiwi fruits.
But even more than goods, this opens up opportunities for people to work across the two nations. Professionals will be able to work in New Zealand more easily, Johnson said, as well as vice versa.
Currently only a small proportion of trade is done between the countries, with only less than 0.2 percent of UK trade done with New Zealand.
While this deal is unlikely to increase Britain’s economic growth, the UK hopes this is a step towards finally joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which is a trade block between 11 countries: Australia, Canada, Japan, Mexico, Brunei Darussalam, Chile, Malaysia, Peru, Singapore, Vietnam, and New Zealand.
The UK already has existing deals with many of the CPTPP’s members, which mostly rolled over from when the UK was a part of the EU. But membership into CPTPP would allow the UK to have much more access to services, and digital trade.
Be the first to comment