BCC Responds to UK-NZ Announcement of Agreement in Principle on Trade

26th October 2021

William Bain, Head of Trade Policy at the British Chambers of Commerce, said:

“Business will welcome an Agreement in Principle between the UK and New Zealand covering trade in goods and services. 

“We particularly welcome the intention to agree comprehensive chapters on market access, labour mobility and professional qualifications, digital trade, and green goods and services. In the year prior to start of the pandemic, the UK had a £366m surplus in services trade with New Zealand, with particular strengths in insurance, pensions, travel, communications, other financial services and intellectual property.

“New Zealand-UK trade is currently between £2-3bn per annum. When this agreement is translated into a final free trade agreement it should provide new opportunities for UK exporters as well as resulting in some small falls in the price of New Zealand wine and other goods imports. 

“UK road vehicles, pharmaceutical and other manufacturing exporters will welcome these improved trading terms, with cars accounting for a fifth of all UK goods exports to New Zealand. The agreement on green trade also has the potential to set a new benchmark on a commitment to sustainability within free trade agreements globally.

“We look forward to engaging with the UK Government and the New Zealand Ambassador in the final stages of these negotiations and to giving our views on the draft text at the earliest opportunity.”