UK signs free trade deal with New Zealand

The UK and New Zealand have a free trade agreement. The agreement was reached after sixteen months of negotiations. They started after Brexit.

The countries have agreed, among other things, on the elimination of duties on certain products. These include kiwi fruit, honey and white wine from New Zealand and clothing and bulldozers from the UK. It is also easier for Brits to work in New Zealand and vice versa.

Prime Ministers Johnson and Ardern announced the news during a Zoom conversation. “This is a great trade deal for the UK, strengthening our long-standing friendship with New Zealand and our Indo-Pacific ties,” Johnson said. Ardern was equally enthusiastic. She says it’s the best trade deal in New Zealand’s history.

Johnson and Ardern are delighted:

The deal is likely to have little impact on the overall volume of UK trade. About 0.2% of trade is now with New Zealand.

Nevertheless, the British government was very keen to get the deal done. The hope is that this is the prelude to joining the CPTPP, a trade organization that includes Australia, Singapore and Mexico in addition to New Zealand. The UK already signed a free trade agreement in June with australia.