Daily Management Review

UK and New Zealand agree on a free trade deal


The UK and New Zealand have reached agreement in principle on the terms of a future free trade agreement, according to the Office of the British Prime Minister.

The agreement will remove tariffs on British exports, provide new opportunities for technology and services companies, and make it easier for British professionals to work in New Zealand. Bilateral trade between the two countries totalled $2.3bn last year and is expected to grow thanks to the new deal.

"An unprecedented deal was agreed today (October 20) in a video call between British Prime Minister Boris Johnson and New Zealand Prime Minister Jacinda Ardern after 16 months of negotiations by the Department for International Trade," it said.

The UK authorities note that a "huge list" of goods from the country will be subject to a 10% tariff elimination. This applies to clothing, shoes, buses and ships, among others. This is expected to give British exporters an advantage over their foreign competitors in the market.

After Brexit, the UK entered into a trade agreement with the EU and also agreed to maintain previous terms of trade with more than 60 countries that have free trade agreements with the EU. In addition, London has made similar deals with Australia and Japan.

source: bbc.com