New International Trade Secretary Anne-Marie Trevelyan is set to announce a multibillion-pound merger this week. This would see reduced tariffs on products such as gin, chocolate, clothing, cars and buses, and allow UK investors fair access to the country.
In return, UK buyers will be able to choose between a wider range of ‘premium’ New Zealand lambs, while levies of up to 20p a bottle on the country’s thriving wine industry would also be reduced.
Tariffs of up to 10% on UK products would be removed, giving UK exporters an edge over their international competitors in New Zealand’s import market, which is expected to grow 30% by 2030.
Cars are the UK’s biggest export to New Zealand, with £ 133million sold last year.
The NFU has said it supports the government’s goals in its trade negotiations.
But the farmers’ union is worried about the potential impact of trade deals that eliminate all tariffs on imports from the world’s largest agricultural exporters, including New Zealand.
Phil Stocker, chief executive of the National Sheep Association, said he had long-term concerns.
“Our concern is the long term impact,” he said. Right now the global market is strong, but if there is volatility UK sheepmeat producers would be the first to be affected. We would need measures in place to protect ourselves against that. “
Although Britain’s trade with New Zealand is only about £ 2.3 billion a year, negotiators hope this will help the UK be accepted into a much larger trading bloc including Australia, Canada, Japan, Singapore, Brunei, Chile, Malaysia, Mexico. , Peru and Vietnam.
Ms. Trevelyan held the first round of talks on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership last month.
The New Zealand deal would be similar to the deal signed in June with Australian Prime Minister Scott Morrison.