Follow the podcast on

Trade Minister David Parker said the first talks were expected to begin in mid-July. Photo / Mark Mitchelll

NZ kicks off free trade talks with 'old friend' UK

Author: Newstalk ZB / NZ Herald,
Publish Date: Wed, 17 Jun 2020, 6:52PM

More than three years after New Zealand and the United Kingdom began working on a post-Brexit trade deal, formal talks have kicked off.

Trade Minister David Parker announced the news on Tuesday, with the first round of talks expected to take place in mid-July by video conference.

"As the UK embarks on its next steps post-Brexit, New Zealand is pleased to be among the first countries to negotiate a trade agreement with one of our oldest friends," Parker said in a statement.

"New Zealand and the United Kingdom have a close relationship, including strong trade and economic ties, common values and traditions and a shared history. A free trade agreement will be an important new milestone in that relationship."

According to the Ministry of Foreign Affairs and Trade, the UK is New Zealand's sixth largest trading partner, with two-way trade worth almost $6 billion in 2019.

As well as removing tariffs on trade, Parker said talks would aim to find "new approaches" to achieve the removal of non-tariff barriers, streamlined customs procedures and regulatory co-operation.

New Zealand is already negotiating a free trade agreement with the European Union, although earlier this month Parker described leaked details of an offer from the trading bloc as a "very negative signal".

No timetable has been set for when the talks are hoped to be concluded.

According to MFAT, modelling undertaken by the UK Government estimated that a free trade deal could raise New Zealand's gross domestic product by close to $1b (after it was in place for 15 years), suggesting New Zealand's exports to the UK could grow by 40 per cent, while UK exports could increase by 7.3 per cent.

"In the post-Brexit environment, it makes more sense than ever for us to be working together to grow this partnership for the future," Parker said.

"As the global economy continues to be severely impacted by the effects of Covid-19, we are more committed than ever to concluding a bilateral FTA capable of delivering significant benefits to the people of both New Zealand and the UK."