The government said a post-Brexit trade deal with New Zealand could be signed in the coming weeks, with both nations agreeing to ditch tariffs as high as 10 per cent on a range of products.
The latest round of trade talks between both sides, which ended last month, made good progress towards a final deal, the Department for International Trade said.
“We are working round the clock to get this deal done in the coming weeks. We are both big fans of each other’s high-quality products, so this could be a huge boost that allows British shoppers to enjoy lower prices and British exports to be even more competitive,” Secretary of State for International Trade Liz Truss said.
New Zealand wine, including Sauvignon Blanc and Pinot Noir, which currently face tariffs of up to 20p per bottle would be expected to have these tariffs slashed as part of the trade deal.
Chocolate, gin, buses and clothes are among British products that could see tariffs of up to 10 per cent removed.
Major British exports such as Beefeater gin and Belvoir soft drinks currently face a tariff of 5 per cent when entering New Zealand, as do products from chocolate to cheese and crisps.
“A UK-New Zealand FTA is great news for gin produced in the UK. There’s a big opportunity for growth in New Zealand, with the gin category doubling in size in the last three years, led by the premium+ segment,” Louise Ryan, managing director, The Gin Hub Pernod Ricard, said.
“Cutting the gin tariff to zero will enable us to put more investment behind our iconic British brands, such as our blockbuster Beefeater London Dry Gin, which is accelerating growth with the launch of new flavours: Beefeater Pink Strawberry and Beefeater Blood Orange.”
Total trade in goods and services between the UK and New Zealand was worth £2.3 billion last year, the department noted.
Cars are the UK’s biggest export to New Zealand, with £133 million-worth sold last year. Buses, motorhomes and caravans are in line to also see tariffs up to 10 per cent removed, alongside clothing which would benefit the UK’s fashion industry that sold £30m-worth of clothes to New Zealand last year.
Other popular New Zealand products which could potentially be made cheaper include apples and Manuka honey, with the country importing over £42m of apples and over £32m of honey in 2020. The tariffs on these products, 8 per cent and 16 per cent respectively, are set to be eliminated as part of the agreement.
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