The announcement of a trade deal between the UK and New Zealand is “highly possible” by the end of the month, according to insiders in the Department for International Trade (DIT).
A source told the Daily Telegraph that an announcement could come in the next two weeks, following hot on the heels of June’s agreement with Australia.
Trade between both countries was worth £2.9billion in 2019.
Ambitious
However, the same official said the department could hang on until September in order to ensure it reaches the “best deal” for the UK.
“New Zealand will need to give us more on services, mobility and investment if they want a deal,” they said.
UK High Commissioner to New Zealand Laura Clarke also said that a bilateral trade agreement should be “ambitious in terms of tariff reduction but also very innovative in things like what you do on services and digital trade”.
Wine and cars
A deal is expected to slash tariffs on wine imports from New Zealand, while the UK would see tariffs slashed on car exports worth £200m per annum the other way, according to the Express.
New Zealand wants a deal that removes all tariffs and quotas, including for sheep and beef over a 15-year period and for dairy within half a decade.
Services and investment
The agreement is also expected to cover mutual recognition for professional qualifications and movement of professionals working in both countries.
Former New Zealand High Commissioner to the UK, Sir Lockwood Smith, said Britain wants a deal that would allow its firms to invest a higher amount of money into the country without being required to first secure government approval.
In New Zealand, most foreign entities have to seek Overseas Investment Office approval if they want to invest more than $100 million.
“We need foreign investment, we need more competition around some services,” Smith said of New Zealand.
