The New Zealand-United Kingdom free trade agreement will come into force at the end of May, removing most tariffs on exports to the United Kingdom weeks earlier than hoped.
Prime Minister Chris Hipkins, in London for King Charles’ coronation, and British Prime Minister Rishi Sunak announced the start date for the agreement on Thursday morning.
The deal was initially hoped to be finalised by the end of 2022, but after political turmoil and two new prime ministers in the United Kingdom, the UK expected to bring the deal into force in mid-2023.
Hipkins said Sunak had supported bringing forward the deal to the May 31 start date. Sunak said the trade deal marked “a new chapter in the great friendship between our two countries”.
Trade Minister Damien O’Connor said the free trade agreement is expected to grow New Zealand’s GDP by nearly $1 billion.
The free trade agreement, signed in March 2022, will mean 69 per cent of current exports will be tariff-free from the first day it is in force. The remaining exports, which include fresh apple, butter and cheese, and beef and sheep meat, will progressively become tariff-free over 15 years.
The agreement will also open New Zealand up to British contractors and business professionals, and raise the threshold for scrutinising UK investments in New Zealand to $200 million.
The UK is currently New Zealand’s seventh-largest trading partner, and the free trade agreement was expected to boost exports by 40 per cent.
Credit: stuff.co.nz
