New Zealand And The United Kingdom Have Signed A Free Trade Agreement.

Key Sentence:

• The UK has a free trade agreement with New Zealand that will benefit consumers and businesses alike.
• Prime Minister Boris Johnson said the deal would cut exporter costs and open New Zealand’s job market to skilled British workers.

The government hopes this is a move to join trade clubs like Canada and Japan. The New Zealand deal itself is unlikely to drive UK growth, according to his estimates. Overall, only a fraction of the UK trades with New Zealand, less than 0.2%.

The National Labor and Farmers Union (NFU) said the deal could hurt British farmers and lower food standards. But International Trade Minister Anne-Marie Trevelyan said it “offers a two-way opportunity for a large production share” and that British farmers need not worry.

Johnson also New Zealand Prime Minister Jacinda Ardern agreed to the pact in a video chat on Wednesday after 16 months of talks. Duties will be waived on British goods, including clothing, boats, bulldozers, and New Zealand goods, including wine, honey, and kiwi fruit. The government says that professionals such as lawyers and architects will find it easier to work in New Zealand.

A move towards a more significant trade deal?

However, according to the UK government’s estimates, the deal will not boost UK economic growth or GDP. New Zealand will do a little better because it can probably sell more sheep in the UK.

But like the recent trade deal with Australia, Britain hopes it is a step towards joining the Comprehensive. And Progressive Trans-Pacific Partnership Agreement (CPTPP). This trade bloc includes Australia, Canada, Mexico, and Japan. The UK already has agreements with many members that carry over from its time in the European Union. But CPTPP membership will give him better access to digital services and commerce.

In the video of the deal, Johnson said: “We moved on, packed tight, and together we had the ball. And we came to an agreement. And I think that’s a lot. ” Ms. Ardern said: “I love the use of metaphors for rugby, but if we continue like this, it will, of course, end in an All Blacks wins. “And I know New Zealand thinks that way about this free trade agreement, but it’s good for both of us how it happened.”

The NFU said the deal could have “huge losses,” especially for farmers and meat producers in Britain.

Its president, Minette Batters, said the Australia-New Zealand agreement meant. We will open our doors to significant additional quantities of imported food – whether it is produced to our high standards or not – with almost no consideration in guaranteeing farmers in the UK.”

“It is a fact that UK farms face significantly higher production costs than farmers in New Zealand and Australia. And keep in mind that margins here are already tight due to ongoing labor shortages and rising operating costs.

“The government is now asking UK farmers to negotiate with some of the world’s export-oriented farmers without severe and long-term investment and adequate funding in UK agriculture to allow us to do so.

Emily Thornbury, the shadow trade secretary, said the government’s figures suggest the deal “will reduce employment in our farming community. Generate no additional growth and only add £112 million in additional exports to UK businesses compared to pre-pandemic levels.” produce. “