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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
- 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
- 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.