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Analyst: Brexit will damage New Zealand no matter what happens

Newstalk ZB,
Publish Date
Tuesday, 29 January 2019, 7:57p.m.
PM Jacinda Ardern signed a mutual agreement with her UK counterpart Theresa May last week. (Photo / AP)

While British MPs will have another day of voting on Brexit issues ahead of them.

There are warnings that no matter which deal will win in the end, New Zealand exporters to the UK and EU will be hit in the pocket.

Market research company Ibis World is warning the mutual recognition agreement that New Zealand and the UK signed last week won't have much of an impact.

Senior industry analyst Jason Aravanis told Larry Williams the agreement is different to a free trade deal.

“When Brexit occurs, according to World Trade Organisation rules, the import tax that the UK charges on exports from New Zealand is going to increase, and that’s going to have a negative impact on New Zealand exporters.”

He says this will occur no matter what type of Brexit occurs.

Aravanis says it will affect industries such as lamb and wine.

He says if there is a no-deal Brexit, the degree of chaos it would cause would be worse for New Zealand.

“Just basic Government practices are going to take much longer, which is going to cause waiting time for supply chain management to increase, and that will have negative impact across the board.

Aravnis says that the UK will have to hire specialist workers in order to negotiate the free trade deal, as the European Union has managed that for them in past.

ON AIR: Overnight Talk

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