Free Trade Agreement: New Zealand — House of Commons, 2021-10-21
Topic: Foreign Trade
Anne-Marie Belinda Trevelyan (Conservative, Centre-right): Let me first thank the right hon. Member for Islington South and Finsbury (Emily Thornberry) for what I am sure were, as always, wise words in her point of order, and for the opportunity to set out to the House some of the key issues that we will be discussing. I take absolute note of the points that have been raised With permission, Madam Deputy Speaker, I would like to make a statement on the new agreement in principle between the UK and New Zealand on our free trade agreement, which we are working towards delivering Yesterday, the UK agreed in principle the main details of a trade deal. A UK-New Zealand free trade agreement will be another major trade deal, like our agreement with Australia. This marks a significant step towards the UK’s aim to join the £8.4 trillion comprehensive and progressive agreement for trans-Pacific partnership free trade area. The UK-New Zealand trade relationship was worth £2.3 billion last year and is set to grow under the deal. Both Prime Ministers have heralded the new partnership, which will take on some of the biggest global challenges, from climate change to gender equality, respect for indigenous communities and the future of digital trade This deal is part of the Government’s commitment to building back better, bringing the benefits of trade to level up all parts of the country. Our shared history with New Zealand, common values and commitment to free trade is matched by a dedication to high standards and the rule of law. It makes complete sense to do a trade deal with New Zealand, and it will continue to strengthen our long-standing relationships as key allies and friends We have laid out the core benefits of a deal as per the agreement in principle. A comprehensive trade agreement with New Zealand will slash red tape and deepen access for our advanced tech and services companies, while making it easier for smaller businesses to break into the New Zealand market. UK workers will benefit from better business travel arrangements to New Zealand, and UK professionals such as lawyers and architects will be able to work in New Zealand more easily, allowing UK companies to set up shop in New Zealand and bring the best British talent with them High-quality New Zealand products that British consumers love will become more affordable, from Marlborough sauvignon blanc to manuka honey and kiwi fruit. The new agreement in principle means that existing tariffs as high as 10% will be removed on a huge range of UK goods, from shoes to ships and from buses to bulldozers, giving British exporters an advantage over international rivals in the New Zealand import market, which is expected to grow by 30% by 2030 Throughout negotiations, we have remained in close contact with businesses, farmers and other stakeholders. We will back British farmers in opening up new export opportunities, such as to the CPTPP markets, which are expected to account for a quarter of global import demand for meat by 2030. The agreement in principle adds momentum for accession to CPTPP, of which New Zealand is a key member. CPTPP had a joint GDP of £8.4 trillion in 2020 and includes some of the biggest economies of the present and the future, from Japan and Mexico to Malaysia and Singapore. By 2030, two thirds of the world’s middle classes will be in Asia, creating unparalleled opportunities for UK businesses. Britain needs to be positioned in the coming decades to trade freely with these high-growth parts of the world The Governments of New Zealand and the United Kingdom now intend to finalise the free trade agreement text before signature and subsequent entry into force of the deal. Once signed, the deal will be presented to Parliament and published on gov.uk, alongside an independently scrutinised impact assessment. There will be full and robust scrutiny of the deal, including time for the relevant parliamentary Committees to produce a report on the deal before it is ratified. In addition, the new Trade and Agriculture Commission, chaired by Professor Lorand Bartels, will provide expert and independent advice to the Government and Parliament once the deal has reached signature stage. The new commission will look specifically at how the deal is consistent with relevant domestic statutory protections, ensuring that world-leading British agricultural standards are upheld. This agreement will strengthen ties between two nations committed to free and fair trade, delivering strategic and economic benefits to the United Kingdom This agreement in principle on a free trade deal is a win-win for two natural trading partners. It is tailored to the UK’s strengths, slashes tariffs on our exports and deepens access for British businesses. Our like-minded democracies will now unite to take on great global challenges such as climate change while harnessing opportunities such as digital trade. A UK-New Zealand free trade agreement will show what global Britain can achieve as a sovereign trading nation This agreement in principle is just one part of our ambitious strategy to deepen trade ties with like-minded partners and ensure that these alliances create a more predictable, free and fair framework for British businesses. Free trade is not something to be frightened of or to run away from. We want to be working with allies to influence the rules of the game and, in today’s world, FTAs are the vehicles by which those rules are shaped This deal will be a modern partnership for the 21st century: two staunch democracies working together to meet global challenges from climate change to the future of digital trade. Together we will embrace the opportunities of the global marketplace to support jobs, enterprise and wealth creation. We will fuel our recovery from the covid crisis through free trade and demonstrate that it is part of the solution to the greatest challenges of our time. That is what this agreement in principle represents, and I commend this statement to the House.