The United Kingdom and New Zealand have reached an agreement on a free trade agreement that will benefit both consumers and companies, according to the UK.
The agreement, according to Prime Minister Boris Johnson, would lower export prices and provide access to New Zealand’s employment market for UK experts.
The administration believes it would pave the way for Israel to join a trading club with countries like Canada and Japan.
According to the government’s own projections, the New Zealand pact is unlikely to enhance UK growth.
Overall, New Zealand accounts for less than 0.2 percent of UK trade.
The pact, according to Labour and the National Farmers Union (NFU), may harm UK farmers and undermine food standards.
However, Anne-Marie Trevelyan, the Secretary of State for International Trade, claimed it “provides possibilities in both directions for tremendous sharing of food” and that British farmers need not be concerned.
After 16 months of discussions, Mr Johnson and New Zealand Prime Minister Jacinda Ardern reached an agreement via video conference on Wednesday.
Tariffs on clothes, ships, and bulldozers from the United Kingdom, as well as wine, honey, and kiwi fruits from New Zealand, will be eliminated.
Lawyers and architects, for example, would be allowed to operate more freely in New Zealand, according to the government.
A Bigger Deal On The Horizon?
According to the UK government’s own estimates, the deal is unlikely to boost UK economic growth – or GDP. New Zealand may do somewhat better since it will be able to sell more lamb to the United Kingdom.
However, the UK believes that this, like the previous trade agreement with Australia, is a step toward joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trading bloc that includes Australia, Canada, Mexico, and Japan, among others.
Many of the members have agreements with the UK that were carried over from when it was a member of the EU. However, joining the CPTPP would offer it more access to services and digital commerce.
“We’ve scrummed down, we’ve packed tight, and collectively we’ve put the ball over the line and we have a deal,” Mr Johnson said in a video of the agreement being reached. And I believe that is a fantastic bargain.”
“I enjoyed your use of rugby metaphors,” Ms Ardern remarked, “but if we were to keep on, it would inevitably end with the All Blacks winning.”
“And I know New Zealand feels the same way about this free trade deal, but it’s actually beneficial to both of us.”