UK-New Zealand FTA enters into force; expected to boost NZ's economy

Prime Minister Chris Hipkins announced the commencement of the agreement, highlighting it as one of the seven new or upgraded FTAs successfully negotiated by the labour government to date.

"The economy is through the worst, with inflation having peaked and set to return to the target range next year, alongside healthy growth and an influx of workers to address skill shortages,” Hipkins said in a statement.

The Prime Minister further emphasised that the trade agreement would bolster the national economy significantly, predicting an annual GDP increase of up to $1 billion.

New Zealand businesses will experience immediate financial benefits. "Our earlier than expected implementation means that from today New Zealand businesses will immediately save around $37 million dollars, thanks to the instant elimination of tariffs and new duty-free quotas covering 99.5 per cent of current exports," Hipkins explained.

Trade minister Damien O’Connor echoed the Prime Minister's sentiment, underlining the tangible benefits of the trade agreements to everyday New Zealanders. "Trade agreements can at times feel more academic than tangible, that is until the savings begin to flow through, saving businesses millions and boosting jobs for Kiwis,” O’Connor said.

O’Connor also noted the expansion of export goods covered by an FTA, which has grown from 52.5 per cent to 73.5 per cent since 2017. The minister underscored the vital role of these agreements in promoting export growth and supporting New Zealand businesses to overcome international trade challenges.

He highlighted how the UK FTA would alleviate cost pressures for exporters, expand opportunities for small businesses, and foster job creation during a cost-of-living crisis. "One in four jobs depend on trade – showing the importance of trade to our nation’s growing economy," O’Connor stated.

Fibre2Fashion News Desk (KD)