£800m a year bonanza in New Zealand trade deal

BRITAIN yesterday signed its post-Brexit trade deal with New Zealand, a move claimed to boost our economy by £800million a year.

All tariffs on exports to the nation will be scrapped, while UK shoppers should also benefit from cheaper imports.

Anne-Marie Trevelyan, the International Trade Secretary, signed the agreement yesterday, with the pact expected to boost trade between the two nations by 60 per cent.

She said: “This deal will slash red tape, remove all tariffs and make it easier for our services companies to set up and prosper in New Zealand.

“Our trade with them will soar, benefiting businesses and consumers throughout the UK and helping level up.

“Like all our new trade deals, it is part of a plan to build a network of trade alliances with the most dynamic parts of the world economy, so we set the UK on a path to future prosperity.”

Although tariffs on almost all imports will be wiped out, the UK secured some protections for farmers over imports of beef and lamb, that will see changes phased in over up to 15 years.

New rules will also make it easier for professionals such as lawyers and auditors to work in New Zealand. The deal is expected to add £200million to take home pay packets in the UK and 0.03 per cent to national income.

Government analysis predicts the West Midlands and North-east will enjoy the biggest boost from the deal, being centres for machinery and vehicle manufacturing.

Exports of ships, bulldozers and buses currently have five per cent tariffs.

Here, shoppers will enjoy lower prices on products such as Marlborough wines, Manuka honey and kiwi fruit.

The Federation of Small Businesses’ Mike Cherry said: “Close to a third of smaller exporters already have ties to the nation. As such, this deal marks a great step forward,”