New Zealand trade deal 'good news for shoppers and exporters'
The UK is moving closer to sealing a significant trade deal with New Zealand, which could signal cheaper wine, food and drink.
The deal will also see tariffs removed from British products being exported to New Zealand, including gin, chocolate, clothes - and buses.
The government said this was good news for both British shoppers and exporters, as these tariffs could be as high as ten per cent in many cases.
In addition, total trade in goods and services between the UK and New Zealand - worth £2.3 billion last year - is likely to increase after a trade deal.
The government says that the latest round of trade talks with New Zealand had ended with 'good progress ' being made towards a final deal.
Liz Truss, who has just relinquished her role as Secretary of State for International Trade to take up the role of Foreign Secretary, said: “We are working round the clock to get this deal done in the coming weeks.
“We are both big fans of each other 's high-quality products, so this could be a huge boost that allows British shoppers to enjoy lower prices and British exports to be even more competitive.
“New Zealand and the UK are natural partners united by modern values. An agreement would reflect those ideals and is a win-win for both countries.
“It would also be an important step towards our accession to CPTPP, helping the UK gain access to 11 of the world 's biggest and fastest-growing economies across the Pacific region and opening doors to dynamic markets across the world. ”
New Zealand is a leading member of CPTPP (the Comprehensive and Progressive Agreement for Trans-Pacific Partnership), a free trade area worth around £9 trillion, which the UK is hoping to join.
Joining CPTPP would open opportunities for UK businesses to sell in some of the largest and fastest-growing markets in the world, populated by half a billion people. New Zealand is among those supporting the UK 's bid to join CPTPP.
In the short term, it is the slashing of tariffs on food and drink that will benefit most people - in both the UK and New Zealand.
Popular New Zealand wines, including Sauvignon Blanc and Pinot Noir, which currently face tariffs of up to 20p per bottle, will become cheaper to buy, and in the other direction, British exports such as Beefeater gin and Belvoir soft drinks would no longer face a tariff of five per cent when entering the Commonwealth country.
Dominic Goudie, head of international trade at the Food & Drink Federation, said: “We hope to see the UK conclude an ambitious trade deal with New Zealand which removes tariffs facing UK exports of quality manufactured food and drink.
“This would provide a welcome boost for producers and exporters of iconic UK products including chocolate, coffee, biscuits and soft drinks, where UK sales in New Zealand are currently £10m each year.
“Our sector has significant untapped potential for export growth and removing existing tariffs will make UK products more competitive, creating the conditions to drive future growth in New Zealand.
“Given their relative geographical proximity, having deals in place with both New Zealand and Australia that deliver similarly ambitious outcomes will be welcome news for UK producers seeking to expand sales around the world, as many will look to supply to both markets. ”