Govt Urges Businesses to Use Reduced Tariff Rates Under UK Free Trade

“Our high-quality wine, red meat, dairy, honey, and apples have driven UK demand for Kiwi produce,” Mr. McClay noted.

The Government is urging businesses to capitalize on the reduced tariff rates available through New Zealand's free trade agreement (FTA) with the United Kingdom (UK), which has become the country’s fastest-growing export market, Trade Minister Todd McClay announced.

The FTA, which came into force one year ago today, has already resulted in a significant 19 percent increase in New Zealand's exports to the UK, with 84 percent of these exports now entering duty-free. Minister McClay celebrated the anniversary by meeting with UK High Commissioner, Her Excellency Ms. Iona Thomas.

“Our high-quality wine, red meat, dairy, honey, and apples have driven UK demand for Kiwi produce,” Mr. McClay noted. Over the past year, New Zealand exported an additional $30.9 million worth of dairy products and $3.7 million worth of honey products to the UK under reduced tariffs.

The agreement has also benefited New Zealand businesses in innovative sectors such as agritech and computer software, with the value of Kiwi services exports to the UK rebounding from $942 million in 2022 to $1.43 billion in 2023.

“Work continues to streamline export processes and ensure the further 23 percent of Kiwi businesses are utilizing the reduced tariff rates,” Mr. McClay added. Significant progress has been made, such as the removal of paper export certificates for sheep meat, which saves exporters considerable time and administrative costs. The Government aims to build on this success to deliver more paperless trade wins.

Leveraging the agreement is a crucial part of the Government’s strategy to rebuild the economy, lower the cost of living, and provide the quality public services New Zealanders expect.

As the UK remains a key market for New Zealand, businesses are encouraged to take full advantage of the opportunities presented by the FTA to enhance their export activities and contribute to the country's economic growth.