The UK and New Zealand have struck a historic agreement to increase trade between both countries. The agreement will see trade taxes between the two countries slashed and make it easier for businesses to sell to each other.
It is estimated that the agreement will boost the UK economy by £800 million and expand bilateral trade by 60%. Red tape will also be slashed for the 6,700 British businesses who export goods to New Zealand.
Borders and Scottish businesses are expected to benefit with tariffs on items such as textiles and cashmere being reduced from 5% to 0%. Manufacturing will also benefit with fibre optic cables and car parts seeing reductions from up to 10% tax to 0%.
British consumers will also see a reduction of taxes on New Zealand wines from 5% to 0% under the new deal, making it cheaper to buy these products in the UK.
Importantly, there are a number of protections for Scottish farmers built into the deal including quotas on the amount of beef and lamb that can be imported into the UK.
The agreement includes a ground-breaking environment chapter that reinforces commitments to the Paris Agreement and efforts to meet net zero. It will also encourage trade and investment in low carbon goods, services and technology, with the most comprehensive list of environmental goods with liberalised tariffs in a trade deal to date.
The trade deal will now undergo parliamentary scrutiny in Westminster during the next few months.
The independent Trade and Agriculture Commission will also be given time to prepare its report on the trade deal. It will investigate whether the agreement will protect UK agricultural, animal welfare and environmental standards.
John Lamont MP said:
“It is encouraging to see the UK Government grasping the opportunities of international trade to boost our economy and sell iconic Scottish products on the global market.
“New Zealand is a key ally and friend on the global stage, as well as being one of the world’s most advanced economies.
“The opportunities for local businesses to trade with consumers and businesses in New Zealand are huge. Cutting tariffs on products like cashmere are really important in opening up new trading opportunities for mills in the Borders.
“I will now be closely scrutinising the details of this deal. Importantly, I will be looking out for the Trade and Agriculture Commission’s report on this free trade agreement, who will ensure there are protections in place for farming and environmental standards.
“I will also be working with my colleague, David Mundell MP, who is the UK’s Trade Envoy to New Zealand, to see how the benefits of the deal can be delivered for the Scottish Borders.”
