A trade deal between the UK and New Zealand could see both countries ditch tariffs as high as 10% on a range of high-quality products.
The latest round of trade talks between both sides ended last month with good progress made towards a final deal.
Under a new deal, a multitude of UK goods would no longer be subject to import tariffs when entering the New Zealand market, and exporters would gain an advantage over international rivals in the New Zealand import market, which is expected to grow by 30% by 2030.
Iconic British exports such as Beefeater gin and Belvoir soft drinks currently face a tariff of 5% when entering New Zealand, as do products from chocolate to cheese and crisps.
The UK’s fashion industry sold £30 million-worth of clothes to New Zealand last year, and businesses like Tee-Time Clothing could now benefit when tariffs of 10% on clothing are lifted.
Biggest exports
Cars are the UK’s biggest export to New Zealand, with £133 million-worth sold last year. Buses, motorhomes and caravans are in line to also see tariffs up to 10% removed entirely.
Much-loved New Zealand wine, including Sauvignon Blanc and Pinot Noir, which currently face tariffs of up to 20p per bottle would also be expected to have these tariffs slashed as part of a trade deal which could be agreed in principle soon.
Secretary of State for International Trade Liz Truss said:
“We are working round the clock to get this deal done in the coming weeks.
“We are both big fans of each other’s high-quality products, so this could be a huge boost that allows British shoppers to enjoy lower prices and British exports to be even more competitive.
New Zealand and the UK are natural partners united by modern values. An agreement would reflect those ideals and is a win-win for both countries.
“It would also be an important step towards our accession to CPTPP, helping the UK gain access to 11 of the world’s biggest and fastest-growing economies across the Pacific region and opening doors to dynamic markets across the world.”
