The draft agreement, which comes after 16 months of negotiations, was negotiated by the UK after its withdrawal from the European Union.
“This is an excellent trade agreement for the UK, strengthening our long-standing friendship with New Zealand and strengthening our relationship with the Indo-Pacific,” Prime Minister Boris Johnson said in a statement.
Trade between the UK and New Zealand is valued at 2. 2.3 billion ($ 3.2 billion) by 2020, less than 0.2% of UK trade. According to the UK government’s own estimates, the deal is not expected to boost UK gross domestic product.
Britain is in a hurry to sign new trade agreements as it seeks to offset the lost economic benefits of EU members. The EU accounted for 42% of exports and 50% of imports of UK goods and services by 2020, and businesses face new barriers to trade after Brexit.
Britain also made agreements with Japan and Norway, but these were based on agreements negotiated by the European Union.
Johnson said New Zealand products that British consumers want are available at low prices ranging from Savignon Blank wines to Manuka honey and kiwi fruit.
New Zealand Prime Minister Jacinta Artern described the countries as “good friends and close partners”.
“The historical ties that unite us are deep,” he said, adding that the trade agreement was “good for our economies, our companies and our people.”
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