The trade deal with New Zealand concluded after 16 months of negotiations has more political than economic significance, showing that the UK can negotiate post Brexit trade deals quickly. It is hoped that it will ‘pave the way’ for the UK to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
The deal envisages that tariff-free sheepmeat quotas will
grow by 35,000t/year for the first four years (on top of the country’s existing
114,000t WTO quota) and then by 50,000t/year from year’s five to 15. This will
give New Zealand a combined tariff-free access of up to 149,000t of sheepmeat
in year one, rising to 164,000t in years five to 15 – quantities the country
has failed to fulfil in recent times.
For beef, New Zealand currently has just 545t/year of
duty-free access to the UK, but the planned deal will see this increase
steadily to 38,820t by year 10, and 60,000t by year 15.
The National Sheep Association argued that in addition to
the increase in access by Australia, in just over a decade, these two countries
will have access to the UK’s entire volume of lamb consumption. Despite fears that the red meat market will
be hit, Asian markets are a priority for Australia and New Zealand as they are
closer and more profitable.
