Trade Agreement between Nz and Uk

Trade Agreement between NZ and UK: Key Highlights

New Zealand and the United Kingdom have recently finalized a historic trade agreement that is expected to provide benefits to both countries. The agreement, which has been in the works for several years, is significant for various reasons. In this article, we`ll take a closer look at the key highlights of the trade agreement between NZ and UK.

Background of the Trade Agreement

The trade agreement between NZ and UK was signed on 31 October 2019 and was supposed to be implemented on 1 January 2021. However, the implementation was delayed due to the COVID-19 pandemic. The agreement is the first free trade deal signed by the UK since it left the European Union in January 2020. The agreement provides for the continuation of existing trade between the two countries and seeks to deepen the relationship between the two nations.

Benefits for New Zealand

The trade agreement is expected to provide several benefits for New Zealand. One of the key benefits is the removal of tariffs on a wide range of goods. This will make New Zealand products more competitive in the UK market, which is the sixth-largest economy in the world. New Zealand`s exporters will gain preferential access to the UK market, which will help them expand their businesses.

Another benefit of the trade agreement is the recognition of New Zealand`s standards and regulatory systems. The agreement will reduce red tape for New Zealand businesses exporting to the UK. It will also make it easier for New Zealand businesses to establish themselves in the UK.

Benefits for the United Kingdom

The trade agreement also provides benefits for the United Kingdom. The agreement will allow the UK to deepen its relationship with New Zealand, which is a valuable partner in the Asia-Pacific region. The UK will also gain better access to New Zealand`s dairy and meat markets, which are some of the most competitive in the world.

The agreement will also provide the UK with a stepping stone towards joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The CPTPP is a trade agreement that includes 11 countries, such as Japan, Singapore, and Canada. Joining the CPTPP will provide the UK with better access to these markets.

Conclusion

The trade agreement between NZ and UK is a significant milestone for both countries. It provides benefits for New Zealand, such as the removal of tariffs and the recognition of standards and regulatory systems. It also provides benefits for the United Kingdom, such as better access to New Zealand`s markets and a stepping stone towards joining the CPTPP. The trade agreement is a testament to the strong relationship between the two countries and is expected to deepen their ties even further.

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