Liz Truss’ New Zealand Trade Deal Worth Over £2.3 Billion a Year ‘Winning’ | Politics | News

[ad_1]

The UK has moved to an ‘offensive’ trading position, says Liz Truss

The Secretary for International Trade revealed that she and her team are currently working “around the clock” to finalize the agreement, which she described as a “win-win for both countries” as well as an important step towards reaching the comprehensive and advanced agreement for the Trans-Pacific Partnership (CPTPP). In addition to chocolate and gin, buses and clothes are among a list of British products that could be dumped with up to 10 per cent tariffs in a move that would encourage New Zealanders to buy Brits.

In contrast, high-quality New Zealand products including wine, food and drink can be duty-free in UK stores.

Trade in goods and services between the UK and New Zealand totaled £2.3 billion last year, and that number is likely to rise as a result of a wide-ranging trade agreement between Wellington and London.

Ms Truss, Member of Parliament for South West Norfolk, Turkey, said: “We are working around the clock to complete this deal in the coming weeks.

International Trade Secretary Liz Truss (Image: GETTY)

Jacinda Ardern, Prime Minister of New Zealand (Image: GETTY)

“We are both big fans of each other’s high-quality products, so this could be a huge boost allowing British shoppers to enjoy lower prices and British exports to be more competitive.”

She added: “New Zealand and the UK are natural partners united by modern values.

“The agreement will reflect these ideals and be a win-win for both countries.”

Only in: Fighting in Afghanistan – Resistance forces take back areas from the Taliban

Chocolate exports are likely to see tariff cuts (Image: GETTY)

Referring to the trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, Ms Truss said: “It will also be an important step towards our accession to the CPTPP, helping the UK enjoy access to 11 of the world’s largest and fastest growing economies across the region. Pacific Ocean and opens doors to dynamic markets around the world.”

Once signed, the agreement will see British exporters gain an advantage over international competitors in the New Zealand import market, which is expected to grow 30 per cent by 2030.

Currently, popular British products such as Beefeater gin and Belvoir soft drinks face a five percent tariff when entering New Zealand, as do products from chocolate to cheese and chips.

British fashion exports to New Zealand are worth £30m a year (Image: GETTY)

New Zealand offers lucrative opportunities for UK exporters (Image: GETTY)

The UK fashion industry sold £30m worth of clothes to New Zealand last year, and companies like Tee-Time Clothing can benefit now when 10 per cent tariffs on clothes are raised.

Cars are the UK’s biggest export to New Zealand, with £133m worth of sales sold last year, and buses, mobile homes and caravans are aligned to eliminate tariffs of up to 10 per cent in full.

Dominic Judy, head of international trade at the Food and Drink Association, said: “We hope to see the UK strike an ambitious trade deal with New Zealand that removes tariffs facing UK exports of high quality processed food and drink.

Liz Truss fact file (Image: Express)

“This will provide a welcome boost to producers and exporters of popular British products including chocolate, coffee, biscuits and soft drinks, with UK sales in New Zealand currently amounting to £10 million each year.”

Mr Judy emphasized: “Our sector has significant untapped potential for export growth and the removal of current tariffs will make British products more competitive, and create the conditions to drive future growth in New Zealand.

“Given their relative geographic proximity, deals with New Zealand and Australia that deliver similarly ambitious results will be welcome news for UK producers looking to expand sales worldwide, with many looking to supply for both markets.”

Map of global trade agreements (Image: Express)

Louise Ryan, Managing Director of The Gin Hub Pernod Ricard said: “The UK-New Zealand Free Trade Agreement is great news for UK-produced gin. There is significant potential for growth in New Zealand, where the gin category has doubled in size in the past three years, led by Premium chip +.

“Reducing our gin tariffs to zero will enable us to put more investment behind our popular British brands, such as the popular Beefeater London Dry Gin, which are accelerating growth with the launch of new flavors: Beefeater Pink Strawberry and Beefeater Blood Orange.”

The sixth round of trade talks with New Zealand took place from 19-30 July 2021, with negotiations now underway on all areas of the FTA.

[ad_2]