Suffering from a divorce from the European Union, Britain is busy learning more, making new friends and updating old acquaintances.
Serenade with the promise of Cheap cars, whiskey, marmiteAustralia first signed a free trade agreement (FTA) with the United Kingdom, but New Zealand is not far behind.
The importance of Australian transactions has also been neglected, with credit rating agency Moody’s say it, “The economic impact of trade agreements is negligible.” Others argue that the deal is more about demonstrating post-Brexit sovereignty than economic gain.
Still, there is no denying that the UK needs to diversify and offset the market. Negative economic impact Of Brexit.New Zealand is also keen to expand trade Pandemic mess And Diversify the trade market Beyond China.
With Expected to trade The big question in August of this year is what is really included for New Zealand and what considerations will guide the negotiations.
There have been many changes since Britain joined the old European Single Market and cut the cords of colonial aprons. New Zealand is now another country and can be closed on its own terms.
Priority 1: Product
Britain was once New Zealand’s most important trading partner in the 19th century, but today it ranks sixth. Nonetheless, trade with the United Kingdom was worth nearly NZ $ 6 billion by 2019, far behind China, Australia and (ironically) the European Union. But it’s not exactly a two-way path.
New Zealand has accepted free trade and has abolished many import tariffs, but the UK still imposes import tariffs. Therefore, British cars rarely attract New Zealand tariffs (except GST), Exorbitantly high tariffs Allocation restrictions on New Zealand’s major exports to the United Kingdom.
For example, beyond the limited quota, New Zealand butter and cheese UK tariffs are equivalent 45% of product value, 16% for honey, up to 20% for seafood. Tariffs on New Zealand wines range from £ 10 to £ 26 ($ 18 to $ 48) per liter.
So New Zealand shouldn’t expect anything more from exports than Australia just earned. There is still a lot of detail about Australian and UK FTAs, but UK quotas are increasing and tariffs are likely to fall sharply over the next decade.According to some analysis, this is Effectively eliminate Of old trade barriers.
The same is true for New Zealand’s major products. There may be resistance from the UK’s agricultural sector, which is warning that free trade is possible.Can spell the endFor the farmers. That’s not the case, but the Australian FTA saysFerocious lineThe Cabinet of Prime Minister Boris Johnson.
Anyway, it’s a shame for New Zealand to settle for less than what Canberra has achieved.
Priority 2: Principle
The scope of FTAs needs to be wider than just product replacement. For example, New Zealand is part of an international initiative, Climate change, trade and sustainability agreements..
Priority should be given to including the guiding principles of the agreement-eliminating tariffs on environmental commodities, eliminating harmful fossil fuel subsidies, and developing ecolabeling programs.
As New Zealand continues to improve its response to agriculture Climate change And Humanitarian agricultural standards, This helps divert blowback to its exports. New Zealand is also seen as using international trade to promote sustainability standards, demonstrating a competitive advantage.
Maori interests must be another major priority in this area. After all, Maori have a unique relationship with the British crown, given that she was Queen Victoria’s messenger. Treaty of Waitangi signed.
When the messengers of Queen Elizabeth II (Victoria’s great-granddaughter) negotiate this latest milestone in the relationship, they are particularly aware of the importance and relevance of the treaty to the new agreement with the Maori-led trade initiative. Must be. ..
Priority 3: People
Finally, the agreement must be about people. Britain Reduction of migration flow Caused by Brexit, New Zealanders are the primary target. Aside from the tourist potential, the UK is looking for Kiwi students, workers and entrepreneurs.
However, maintaining and expanding UK access for New Zealanders must be reciprocal. Otherwise, New Zealand is one of the few positive results of COVID-19, namely “Brain drainReturn the expatriate.
The so-called “government”Generational resetThe “immigration system” is at the heart of this, moving New Zealand from relying on low-skilled workers to attracting higher-skilled workers. Making New Zealand an attractive and viable option for Britain’s best and brightest people should be a by-product of FTAs.
With formal Negotiations have ended, The “quality” of the final transaction is still unknown. However, New Zealanders need to expect an agreement that properly acknowledges the special relationship between the two countries.
More than that, New Zealand is no longer a junior partner. In reality, for Britain after Brexit, a good deal for New Zealand is still a good deal.