An overview of the agreement between UK and New Zealand
After reaching agreement in principle last October, the authorities finalised the deal at the end of last month.
With trade worth £2.3 billion in 2020, future forecasts predict a potential 60% increase in trade between the two nations.
Official sources report that more than 6,700 UK companies exported to New Zealand in 2020, and the number could grow as tariff and non-tariff measures are reduced.
According to government estimates, the measures are expected to positively impact over 5,000 SMEs with more than 200,000 employees that export goods to New Zealand.
Manufacturing companies, especially those in the West Midlands and North East, are expected to benefit most from the FTA. The service sector will also find new business opportunities.
Companies active in the financial, legal and professional consultancy sectors could increase their turnover, further strengthening the UK’s leadership in this field.
Furthermore, the signing of the agreement brings the UK closer to a strategic economic area such as the Comprehensive and Progressive Agreement for Trans-Pacifc Partnership (CPTPP).
With over half a billion people and a GDP of £8.4 trillion in 2020, the agreement brings together some of the world’s fastest growing countries in recent years.
Strengthening its presence in New Zealand could allow British companies to tap into new opportunities in a wider landscape.
But which sectors of the UK economy are expected to benefit most?