The United Kingdom and New Zealand have agreed in principle to a free trade agreement that will boost both countries` economies and trade relations. The announcement was made on June 22, 2021, by the UK International Trade Secretary Liz Truss and her New Zealand counterpart Damien O`Connor.
The agreement, once finalized, will eliminate tariffs on goods traded between the two countries. This will create new opportunities for UK exporters to access the New Zealand market and vice versa. The two countries already have a strong trading relationship, with more than £2.3 billion worth of goods and services traded between them in 2020.
The deal will also increase cooperation in areas such as digital trade, intellectual property, and the environment. It will also look at how to support small and medium-sized businesses as they navigate the new trading landscape.
This agreement is a significant step for the UK as it seeks to expand its trading relationships following Brexit. New Zealand is a major agricultural exporter, and the UK will benefit from greater access to its high-quality products such as lamb, beef, and wine.
For New Zealand, the deal provides an opportunity to diversify its export markets and reduce its reliance on traditional partners such as Australia and China. The agreement also provides a platform for future negotiations with the UK and other countries.
The UK-New Zealand agreement in principle is also a positive development for global trade. It shows that countries can work together to promote free and fair trade, even in turbulent times. The agreement is an example of how countries can deepen their economic ties and strengthen their relationships in a world that is becoming increasingly interconnected.
In conclusion, the UK-New Zealand free trade agreement in principle is a significant development for both countries. It will boost trade and investment, increase cooperation, and provide a platform for future negotiations. It also demonstrates that countries can work together to promote free and fair trade, even in challenging times. The agreement is a positive development for global trade and a signal that countries are committed to working together to promote economic growth and development.