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 Inexpensive cars, whiskey, potAustralia initially signed a Free Trade Agreement (FTA) with the UK, but New Zealand is not far behind.
The importance of Australian transactions has also been overlooked, 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.
Yet it is undeniable that the UK needs to diversify and compensate the market. Negative economic impact From Brexit. New Zealand also wants to develop its exchanges Pandemic mess And Diversify the commercial market Beyond China.
With Should trade The big question in August this year is what is actually 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 on 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 UK was worth nearly NZ $ 6 billion in 2019, far behind China, Australia and (ironically) the European Union. But it’s not exactly a two-way street.
New Zealand has accepted free trade and abolished many import tariffs, but the UK still imposes import tariffs. Therefore, UK cars rarely attract New Zealand tariffs (except GST), Exorbitant prices Allocation restrictions on major New Zealand exports to the UK.
For example, beyond the limited quota, the UK tariffs for New Zealand butter and cheese are equivalent 45% of product value, 16% for honey, up to 20% for seafood. Prices on New Zealand wines range from £ 10 to £ 26 ($ 18 to $ 48) per liter.
New Zealand should therefore expect nothing more from the exports Australia has just gained. There are still a lot of details on Australian and UK FTAs, but UK quotas are increasing and tariffs are likely to drop sharply over the next decade. According to some analyzes, it is Effectively eliminates Old trade barriers.
The same goes for the main New Zealand products. There could be resistance from the UK agricultural sector, which warns that free trade is possible.Can spell the endFor farmers. This is not the case, but the Australian FTA saysFierce linePrime Minister Boris Johnson’s office.
Either way, it’s a shame for New Zealand to settle for less than Canberra has achieved.
Priority 2: Principle
The scope of FTAs must be broader than the simple replacement of products. For example, New Zealand is part of an international initiative, Climate change, trade and sustainability agreements..
Priority should be given to the inclusion of the guiding principles of the agreement, namely the elimination of tariffs on environmental products, the elimination of harmful fossil fuel subsidies and the development of eco-labeling programs.
As New Zealand continues to improve its response to agriculture Climate change And Humanitarian agricultural standards, This helps to divert the flashback 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 sign.
When the messengers of Queen Elizabeth II (Victoria’s great-granddaughter) negotiate this final milestone in the relationship, they are especially aware of the importance and relevance of the treaty to the new deal with the trade initiative led by the Maori. Must be. ..
Priority 3: People
Finally, the agreement must be about people. Britain Reduction of migratory flows Because of Brexit, New Zealanders are the main target. In addition to tourism potential, the UK is looking for Kiwi students, workers and entrepreneurs.
However, maintaining and expanding access to the UK for New Zealanders must be reciprocal. Otherwise, New Zealand is one of the few positive results from COVID-19, namely “Brain drainSend the expatriate away.
The so-called “government”Generational resetThe “immigration system” is at the heart of it all, shifting New Zealand from reliance on low-skilled workers to attracting more skilled workers. Making New Zealand an attractive and viable option for the best and brightest UK citizens should be a by-product of FTAs.
With formal Negotiations are over, The “quality” of the final transaction is still unknown. However, New Zealanders should expect a deal that properly recognizes the special relationship between the two countries.
More than that, New Zealand is no longer a junior partner. In fact, for Britain after Brexit, a good deal for New Zealand is still a good deal.
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