The UK and New Zealand have reached an agreement in principle on the terms of a future free trade agreement, reports chancellery British premiere. The agreement will remove tariffs on UK exports, provide new opportunities for technology and service companies, and make it easier for UK specialists to work in New Zealand. Bilateral trade between the two countries was $ 2.3bn last year and is expected to rise on the back of a new deal.
“The unprecedented deal was agreed today (October 20) during a video call between British Prime Minister Boris Johnson and New Zealand Prime Minister Jacinda Ardern after 16 months of negotiations with the Department of International Trade,” the statement said.
The UK authorities note that 10% tariffs will be canceled on the “huge list” of goods from the country. This applies, inter alia, to clothing, shoes, buses and ships. This is expected to give UK exporters an edge over their foreign competitors in the market.
After Brexit, the UK entered into a trade agreement with the European Union, and also agreed to maintain the old terms of trade with more than 60 countries that have free trade agreements with the EU. In addition, London has entered into similar deals with Australia and Japan.