Brexit bonanza! UK-New Zealand trade deal worth about £12 extra to EVERY Briton

BRITONS are set to receive a huge boost as the post-Brexit trade deal signed with New Zealand will deliver an economic gain of around £12 to each of them.

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The Department for International Trade (DiT) announced the UK had signed a “far-reaching trade deal with New Zealand that will remove trade barriers on a huge range of UK goods and services and provide new opportunities for British businesses”. It was signed by International Trade Secretary Anne-Marie Trevelyan and New Zealand Minister for Trade and Export Growth Damien O’Connor after terms on an agreement was reached in principle in October.

In 2020, the trade relationship between the two countries was worth £2.3billion but this is expected to surge by almost 60 percent, boosting the UK economy by £800million and increasing wages across the country.

Tariffs will be scrapped on all UK exports to New Zealand, including current tariffs of up to 10 percent on clothing and footwear, five percent on buses and up to five percent on ships, bulldozers and excavators.

In addition, tariffs on popular New Zealand products such as Sauvignon Blanc wine will be slashed by five per cent, knocking an average of 20p off the cost of each bottle imported from the country.

Overall, the deal is forecast to deliver an economic gain of between 0.02 per cent and 0.03 per cent by 2035 – equal to around £12 per person.

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Brexit news: Britons are set to receive a huge boost from the UK-New Zealand trade deal (Image: GETTY)

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Brexit news: Anne-Marie Trevelyan highlighted the benefits of the trade deal (Image: GETTY)

International Trade Secretary Ms Trevelyan said: “This deal will slash red tape, remove all tariffs and make it easier for our services companies to set up and prosper in New Zealand.

“Our trade with New Zealand will soar, benefiting businesses and consumers throughout the UK and helping level up the whole country.

“Like all our new trade deals, it is part of a plan to build a network of trade alliances with the most dynamic parts of the world economy, so we set the UK on a path to future prosperity.”

The DiT also listed a number of other benefits the UK will see from the new bumper trade deal, with red tape being slashed for 5,900 UK SMEs who export goods to New Zealand and employ 233,000 people.

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Brexit news: New Zealand Minister for Trade and Export Growth Damien O’Connor (Image: GETTY)

There will be “guarantees for small businesses who will benefit from practical advice and support to find opportunities and link to commercial partners in New Zealand”.

Another benefit will be “flexible rules of origin” that will hand British exports an advantage over international rivals in the New Zealand import market, which is expected to grow by 30 percent by 2030.

The DiT said: “This deal is the most advanced agreement New Zealand have signed with any nation bar Australia and is part of our ambitious strategy to deepen trade ties with like-minded partners and create a more predictable, free and fair framework for UK businesses.

“It is one of our greenest deals ever, confirming commitments to the Paris agreement and Net Zero.

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Brexit news: UK farmers have expressed fears over the trade deal (Image: GETTY)

“It will liberalise tariffs on the largest list of environmental goods in any FTA to date and encourage trade and investment in low carbon services and technology.”

But the trade deal has already come under intense scrutiny by British farmers, who are becoming increasingly worried about the impact cheaper exports from New Zealand, such as lamb, will have on their industry.

A recent impact assessment published by the Government indicated the trade deal could hit agriculture and other food-related sectors by around £150 million.

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Labour’s Shadow Trade Secretary Nick Thomas-Symonds said: “Labour is supportive of a free trade deal with New Zealand that supports jobs, businesses and livelihoods, promotes UK interests and increases exports.

“We will scrutinise the deal and hold the Government to account on the promises that have been made, especially with the farming and agriculture sector.

“The Conservatives undercut our farmers in the Australia deal – this deal must do the opposite and support the agriculture sector.”

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