In a Brexit bonus, Liz Truss is close to completing a £100 million trade pact with New Zealand.
LIZ TRUSS is close to reaching an agreement with New Zealand on a free trade agreement, which would pave the way for Britain’s attempt to join the £9 trillion Pacific free trade zone.
The International Trade Secretary is currently in talks to iron out the last kinks in the accord that will eliminate tariffs between the two countries. According to Whitehall sources, the deal is “very close,” but “a few things remain to be resolved.” “New Zealand will need to give us more on digital and services trade,” the insider continued. Last year, total goods and services trade between the two countries was worth £2.3 billion, and it was believed that a trade pact would increase it by as much as £100 million every year.
“Liz spent most of the weekend in negotiations with her opposite number, and the conversations will continue this week,” the insider said.
The free trade agreement will encourage New Zealanders to purchase British goods by removing tariffs of up to 10% on items such as chocolate, gin, clothing, and buses. It will result in lower expenditures for UK buyers purchasing items such as wine, food, and drink. Tariffs of up to 20p per bottle are currently imposed on New Zealand wine.
A deal would help the UK join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a group of 11 countries that includes New Zealand and Australia, as well as Canada, Japan, and Singapore.
“New Zealand is a leading member of the CPTPP, a free trade area worth approximately £9 trillion, and is supporting the UK’s desire to join,” Ms Truss said last month.
This would allow UK enterprises to sell their products in some of the world’s largest and fastest-growing regions.
In a region with a population of half a billion people, the bloc comprises some of the world’s most powerful economies. By 2030, New Zealand’s import market is predicted to rise by 30%.