An overview of the new UK NZ free trade agreement

New?Zealand’s free trade agreement with the United Kingdom will enter into force on 31 May 2023.

This agreement is built on the unique and strong bond that New Zealand shares with the UK. The signing of this agreement will strengthen our relationship and ultimately create lasting and strong trade and investment opportunities for both countries.

The trade agreement is regarded as one of the best New Zealand has secured and will give New Zealand preferential access to the UK’s NZ$3 trillion consumer market for the first time since the UK entered the EU 50 years ago.

The UK is our seventh largest trading partner and a crucial market for some of our key exports, with two-way goods and services trade worth NZ$5.3 billion. Over time the UK will eliminate all tariffs on New Zealand exports, with 99.5 percent of current goods trade to the UK duty free immediately. This means that NZ exporters will immediately save approximately $37 million per year on elimination of tariffs alone. This will provide new opportunity for many NZ producers to export into the UK market.

Key outcomes of the agreement

• All customs duties on all products will be eliminated between both countries once fully implemented.
• The vast majority of customs duties will be removed entirely the day the FTA comes into force, including wine, honey, onions, kiwifruit, a range of dairy products, and most industrial products.
• New Zealand exporters will be able to compete on a level playing field in the UK, particularly against other global exporters who have already secured free trade deals with the UK.
• A small number of New Zealand products will be liberalised over a longer time frame of up to 15 years but with significant new duty-free quota access provided in the interim.
• 99.5% of current New Zealand goods trade will enter the UK tariff-free from entry into force of the FTA.
• The NZ-UK FTA will provide opportunities for businesses large and small to grow, invest and diversify.

For more information visit New Zealand Ministry of Foreign Affairs & Trade website here

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