Benefits to New Zealand trade

Why is New Zealand negotiating a free trade agreement with the United Kingdom?

On this page

The United Kingdom is one of New Zealand’s closest and most important partners. We already have deep economic and people-to-people connections.

Last year we sold each other almost $6 billion worth of goods and services. We have substantial investment and R&D links.

But there is scope for us to do more through a free trade agreement that removes tariffs, addresses non-tariff barriers, and provides improved access for New Zealand services exporters and investors and companies wanting to bid for UK government contracts.

Early conclusion of a high quality, comprehensive and inclusive FTA will:

  • be an important next step in growing New Zealand’s future economic relationship with the UK
  • create new opportunities for New Zealanders to grow their business in the UK
  • promote our sustainable development and inclusive trade objectives to enable the benefits of trade to reach all communities in New Zealand
    and:
  • contribute to New Zealand’s COVID-19 trade recovery strategy.

Benefits to New Zealand

A free trade agreement with the United Kingdom will bring benefits to New Zealand businesses, consumers and communities:

  • reducing the costs for existing trade and creating new opportunities to grow our goods and services trade to the UK
  • making it easier for companies of all sizes to do business in the UK, including through digital means;
  • establishing a 'level playing field' for New Zealand businesses trading, operating and investing in the UK market
    and:
  • strengthening collaboration with the UK across a range of trade and economic areas.

The United Kingdom has commissioned some initial modelling on the potential benefits of removing tariffs and addressing non-tariff barriers under a UK-NZ FTA. The research estimates:

  • An increase of up to $970 million to New Zealand's GDP*
  • An increase of up to 40% in New Zealand exports to the United Kingdom*
  • An increase of up to 7.3% in United Kingdom exports to New Zealand*

Further details on this analysis, its assumptions and limitations can be found here(external link).

* in year 15 after the FTA enters in force.

Top

We use cookies and other tracking technologies to improve your browsing experience on our website, to analyze our website traffic, and to understand where our visitors are coming from. You can find out more information on our Privacy Page.