Trade deal to boost local economy

It is expected to see a boost of almost $1 billion to the New Zealand GDP, of which I expect Wairarapa will substantially bene t.

- Wairarapa MP Kieran Mcanulty

New Zealand and the United Kingdom struck a major trade deal on Thursday in what Wairarapa MP Kieran Mcanulty said was a “huge moment” for the region.

Prime Minister Jacinda Ardern announced the deal which promised zero tariffs for all New Zealand exports and a $970 million economic boost.

The “in-principle” deal is set to remove tariffs on most goods produced in New Zealand, making 63 per cent of current exports tariff-free once a final agreement is settled.

Beef and sheep meat exports were signalled to become tarifffree in 15 years.

Ardern and Minister of Agriculture and Trade Damien O’connor said at an announcement that the United Kingdom would eliminate all tariffs on New Zealand exports, with more than 97 per cent being removed the day the free trade agreement came into force.

The government expected

New Zealand exporters to save $37.8 million per year on tariff elimination alone.

There would be a removal of tariffs on all honey, wine, kiwifruit, and onions, along with a range of dairy and meat products and most industrial products.

Mcanulty said the agreement was “fantastic news” and a huge moment for New Zealand and Wairarapa.

“The agreement sees the elimination of tariffs on all honey, wine, a range of dairy and meat products and significant increases for beef and sheep meat market access – all things Wairarapa exports.

“Essentially, Wairarapa now has unimpeded access to a significant market.

“It is expected to see a boost of almost $1 billion to the New Zealand GDP, of which I expect Wairarapa will substantially benefit.”

Mcanulty said analysts from across the political spectrum and industry were “hailing this as the best deal New Zealand has ever secured”.

“My old mate Damien O’connor has pulled off a blinder.”

Ardern said she expected beef volumes to increase from 12,000 to 60,000 tonnes exported per year, and sheep meat exports to rise from 149,205 tonnes to over 164,000 tonnes per year with freemarket access after 15 years.

She said this would put more money back into the pockets of farmers while presenting them with the opportunity for further growth.

“The lesson from covid-19 is that we must have as many options as possible for our world-class products to ensure certainty for our primary producers, our economy and our people.”

Federated Farmers president Andrew Hoggard said there had been a “worrying trend of growing protectionism” of agricultural products since the outbreak of covid-19.

“This FTA shows trade liberalisation remains the way forward globally.”

Trade Minister Damien O’connor said the United Kingdom was New Zealand’s seventh-largest trading partner before covid-19, with two-way trade worth nearly $6 billion in the year to March 2020.

He said estimates before covid-19 had also projected that New Zealand goods to the United Kingdom would increase up to 40 per cent.

O’connor said New Zealand’s gross domestic product [GDP] would grow up to $970 million because of the fair-trade agreement.

Although negotiators needed to finalise some details, Ardern said she was confident the fundamental aspects of the deal had been settled.

“We’ve got an agreement in principle here; the deal is done, and so now it’s on to concluding the finer parts of that agreement and seeing it come into force next year.”

United Kingdom Prime Minister Boris Johnson said the trade deal was the “cherry on the top of a long and lasting partnership between the United Kingdom and New Zealand”.

“It is good for both our economies, boosting jobs and growth as we build back better from the pandemic. We already share deep ties of history, culture, and values, and I look forward to the next chapter in our friendship.”

Essentially, Wairarapa now has unimpeded access to a signi cant market.

- Wairarapa MP Kieran Mcanulty