UK agrees Historic trade deal with New Zealand
UK Prime Minister, Boris Johnson, finalised a free trade deal with New Zealand Prime Minister Jacinda Ardern. The deal was agreed during a video call on 20th October after 16 months of talks and negotiations between the Department for International Trade negotiators. A big boost for UK trade, cutting tariffs as high as 10% on UK goods and giving British exporters an advantage over competitors in the New Zealand import market which is expected to grow by 30% by 2030.
The trade deal means New Zealand and the UK can work together more closely towards digital trade and climate change and also provide more opportunities for UK business travel. New Zealand has already agreed trade deals with Japan and Australia, which would allow for the UK to join the Trans-Pacific Partnership (CPTPP), a free trade area of 11 Pacific nations with a GDP of £8.4 trillion in 2020.
The existing deal prior to the new deal was worth £2.3 billion, which looks to grow. The new agreement also means it will be easier for smaller businesses to set up shop in the New Zealand market, whilst also allowing easier trade for advanced tech and service companies. This is also potentially even better news for wine imports with New Zealand having a fine range to offer the UK and European markets. Read more here.
Down under and looking up
Despite the current issues related to the driver shortage and post-Brexit complications affecting the logistics sector, there is also good news from Australia for wine importers. The recent Free Trade Agreement between the UK and Australia will hopefully see a reduction in costs for importers and greater choice. FTAs allow countries to negotiate preferential tariffs and the UK currently accounts for around 33% of wine exports from Australia.
According to a recent report in Harpers, one of the benefits for Australian exporters will be the ability to sell more premium wines to the UK market, particularly red wines. With a new range of ‘cool climate’ wines being brought to market, UK importers have the opportunity to expand sourcing. This is a good opportunity to look down under and gauge the potential of wine imports from an established producer. Read more here.
