Bruised by its divorce from the European Union, Britain is busy getting out more, making new friends and renewing old acquaintances.
Serenaded with promises of cheaper cars, whiskey and marmite, Australia was first to sign a free trade agreement (FTA) with the UK but New Zealand is not far behind.
The National Party opposition was quick to criticise the Labour government for being too slow with a UK deal, but Prime Minister Jacinda Ardern responded pointedly by saying New Zealand wanted quality over speed.
The significance of the Australian deal has also been downplayed, with the credit rating agency Moodys saying, the economic impact of the trade deal is negligible. Others have argued the deal is more about demonstrating post-Brexit sovereignty than economic gain.
Yet theres no denying Britain needs to diversify its markets to offset the negative economic impacts of Brexit. New Zealand, too, is keen to grow trade after the pandemic disruptions and diversify its trade markets beyond China.
With a deal expected this August, the big questions are: whats really in it for New Zealand, and what considerations will have guided negotiations?
Much has changed since Britain joined the old European Common Market and cut the colonial apron strings. New Zealand is a different country now, and can cut a deal on its own terms.
Where once Britain was New Zealands most important trading partner in the 19th century, today it ranks sixth. Well behind China, Australia and (ironically) the European Union, trade with the UK was nonetheless worth nearly NZ$6 billion by 2019. But its not exactly a two-way street.
While New Zealand embraced free trade and did away with many import tariffs, Britain still imposes tariffs on imports. So, while British motor vehicles attract very little in the way of tariffs (other than GST) in New Zealand, there remain prohibitively high tariffs and quota restrictions on New Zealands key exports to the UK.
For example, beyond limited quota volumes, British tariffs on New Zealand butter and cheese are equivalent to 45% of the product value, 16% on honey and up to 20% on seafood products. The tariff on New Zealand wine ranges between 10 and 26 ($18$48) per litre.
Read more: The UKAustralia trade deal is not really about economic gain it's about demonstrating post-Brexit sovereignty
So, New Zealand should expect nothing less for it exports than the gains Australia has just made. While there is a lot of detail yet to come about the Australia-UK FTA, it appears British quotas will rise and tariffs drop quickly over the next decade. According to some analysis, this is effectively an elimination of the old trade barriers.
The same must be a bottom line for New Zealands primary products, too. There may be resistance from the British agricultural sector, which has been sounding the alarm that free trade could could spell the end for farmers. It wont, but the Australian FTA reportedly caused a ferocious row within Prime Minister Boris Johnsons cabinet.
Regardless, settling for anything less than Canberra achieved would be a national disgrace for New Zealand.
The FTAs scope needs to be wider than just product exchange. For example, New Zealand is part of an international initiative pushing for an agreement on climate change, trade and sustainability.
Including the guiding principles of that agreement removing tariffs on environmental goods, eliminating harmful fossil fuel subsidies, and the development of eco-labelling programmes should be a priority.
As New Zealand continues to improve its agricultural response to climate change and humane farming standards, this will help deflect any blowback against its exports. It also represents a competitive advantage, with New Zealand being seen to be using international trade to drive sustainability standards.
Read more: There's a lot we don't know about the UK trade agreement we are about to sign
Mori interests must be the other main priority in this area. After all, Mori have a unique relationship with the British Crown, given it was the emissaries of Queen Victoria with whom the Treaty of Waitangi was signed.
As the emissaries of Elizabeth II (the great-great-granddaughter of Victoria) negotiate this latest milestone in the relationship, they must be made fully aware of the importance and relevance of the Treaty to any new agreement, especially with Mori-led trade initiatives.
Finally, the agreement must also be about people. Britain will be seeking to mitigate the reduced migration flows caused by Brexit, and New Zealanders will be prime targets. Aside from the tourist potential, Britain will want Kiwi students, workers and entrepreneurs.
Retaining and expanding British access for New Zealanders, however, must be reciprocal. If not, New Zealand risks losing one of the few positive outcomes of COVID-19, namely the brain gain of returning expats.
Read more: AustraliaUK trade deal can help spur post-pandemic recovery
The governments so-called once-in-a-generation reset of the immigration system is central to this, moving New Zealand away from relying on low-skilled workers to attracting those with higher skills. Making New Zealand an attractive and viable option for Britains best and brightest should be a byproduct of the FTA.
With formal negotiations concluded, the quality of the eventual deal remains to be seen. But New Zealanders should expect an agreement that appropriately acknowledges the special relationship between the two countries.
More than that, New Zealand is no longer the junior partner. The reality is, for post-Brexit Britain, a good deal for New Zealand is still a good deal.
Read the original here:
What New Zealand should win from its trade agreement with post-Brexit Britain - The Conversation AU
- Government should stop grandstanding over Brexit | London Business News - London Loves Business - May 2nd, 2020 [May 2nd, 2020]
- Brexit: EU Trade Talks Could Collapse in June over Fishing, Regulations - Breitbart - May 2nd, 2020 [May 2nd, 2020]
- How Kronborg Castle helped to inspire Shakespeare | Latest Brexit news and top stories - The New European - May 2nd, 2020 [May 2nd, 2020]
- Extending the Brexit transition period - Third Force News - May 2nd, 2020 [May 2nd, 2020]
- Theres something common in reactions to Ranbir Kapoors jeans, Brexit and Khan Market gang - ThePrint - May 2nd, 2020 [May 2nd, 2020]
- Boris Johnson's perversity on the Brexit cliff edge reminds me of the Free State's rejection of all things British - Slugger O'Toole - May 2nd, 2020 [May 2nd, 2020]
- Who is on the BBC's Question Time tonight? | Latest Brexit news and top stories - The New European - May 2nd, 2020 [May 2nd, 2020]
- Priti Patel allies to 'demand apology' over bullying allegations | Latest Brexit news and top stories - The New European - May 2nd, 2020 [May 2nd, 2020]
- Post-Brexit carte system 'will be easy', France says - The Connexion - May 2nd, 2020 [May 2nd, 2020]
- Brexit does not belong to one party, and Labour must play its part - LabourList - May 2nd, 2020 [May 2nd, 2020]
- EU free trade deal with Mexico (started at same time as Brexit) is AGREED - Express.co.uk - May 2nd, 2020 [May 2nd, 2020]
- Boris Johnson must extend Brexit talks for another YEAR, major Tory Party donor demands - Express - May 2nd, 2020 [May 2nd, 2020]
- DAVID EDGERTON: Where Brexit and Covid-19 collide | Latest Brexit news and top stories - The New European - May 2nd, 2020 [May 2nd, 2020]
- SNP warn of 'chilling prospect' of no-deal Brexit as UK Gov won't extend talks - The Scotsman - May 2nd, 2020 [May 2nd, 2020]
- Campaigners file case that argues EU citizenship is permanent regardless of Brexit | Latest Brexit news and top stories - The New European - May 2nd, 2020 [May 2nd, 2020]
- Boris gives green light for Brexit Britain to start formal US trade talks NEXT WEEK - Express - May 2nd, 2020 [May 2nd, 2020]
- UK seeks access to EU health cooperation in light of coronavirus - The Guardian - May 2nd, 2020 [May 2nd, 2020]
- UK will need to extend Brexit transition, Merkel ally warns Britain - The Guardian - May 2nd, 2020 [May 2nd, 2020]
- Tory MP David Davis urges government capitalise on coronavirus outbreak to seal a Brexit deal | Latest Brexit news and top stories - The New European - May 2nd, 2020 [May 2nd, 2020]
- Brexit trade deal WILL be struck this year say UK negotiators - but only after EU tantrum - Express - May 2nd, 2020 [May 2nd, 2020]
- British lawyer sues EU over her removal from its court due to Brexit - The Guardian - May 2nd, 2020 [May 2nd, 2020]
- Coronavirus: We are all paying the price for the Tory government's preoccupation with Brexit | Latest Brexit news and top stories - The New European - May 2nd, 2020 [May 2nd, 2020]
- Row over EU office in Belfast threatens to derail Brexit talks - The Guardian - May 2nd, 2020 [May 2nd, 2020]
- WATCH: Gina Miller meets online troll who sent hateful, racist and threatening messages over Brexit - The New European - May 15th, 2020 [May 15th, 2020]
- It's 10 years since the Lib Dem-Tory austerity coalition birthed Brexit and our brutal tribalism - Nation.Cymru - May 15th, 2020 [May 15th, 2020]
- It's crazy for UK to go ahead with Brexit given pandemic crisis - Yorkshire Post - May 15th, 2020 [May 15th, 2020]
- Paul Routledge: Tories want us to forget Brexit and crash out - Mirror Online - May 15th, 2020 [May 15th, 2020]
- Theresa May humiliation: Ex-PM's grovelling plea to union bosses amid Brexit vote exposed - Express - May 15th, 2020 [May 15th, 2020]
- Brexit: don't extend the transition period - TheArticle - May 15th, 2020 [May 15th, 2020]
- Brexit Blog: Crucial Times Ahead - Will the Gap Narrow Between the Sides as Negotiations Continue - Government, Public Sector - Ireland - Mondaq News... - May 15th, 2020 [May 15th, 2020]
- Northern Ireland facing 'challenge of a generation' as it confronts Brexit and Covid-19, says accountants society's new boss - Belfast Telegraph - June 9th, 2020 [June 9th, 2020]
- Nissan chief says firm is monitoring Brexit negotiations and warns on tariffs - Chronicle Live - June 9th, 2020 [June 9th, 2020]
- Ireland as a seat for International Arbitration Bost-Brexit - Lexology - June 9th, 2020 [June 9th, 2020]
- Boris Johnson told to 'stop playing political games' with millions of citizens - The Parliament Magazine - June 9th, 2020 [June 9th, 2020]
- Brexit Party took almost 2 million in donations in first quarter of 2020 - The New European - June 9th, 2020 [June 9th, 2020]
- The Brexit Crisis Led to Totally Incompetent Leadership at a Time of Unprecedented Calamity. Now We are Paying for It - CounterPunch - June 9th, 2020 [June 9th, 2020]
- North-east skipper Jimmy Buchan warns no-deal Brexit 'will hurt' Scottish fishing industry - Press and Journal - June 9th, 2020 [June 9th, 2020]
- Boris Johnson wants to 'fix' Brexit deal he once claimed was 'oven-ready' - The New European - June 9th, 2020 [June 9th, 2020]
- Claim that extending the Brexit transition period could cost 380 billion is not credible - Full Fact - June 9th, 2020 [June 9th, 2020]
- Brexit: NI Assembly votes to extend transition period - BBC News - June 9th, 2020 [June 9th, 2020]
- Brexit shock: How tensions between USA and China may affect UK's trade options - Express - June 9th, 2020 [June 9th, 2020]
- The car industry now: will Brexit's impact now be even greater? - Autocar - June 9th, 2020 [June 9th, 2020]
- EU crisis: Brexit risks bloc's 'economic threat' crumbling - 'We should leave too!' - Express.co.uk - June 9th, 2020 [June 9th, 2020]
- Brexiteer called out for claiming Brexit Party was 'most diverse' in European Parliament - The New European - June 9th, 2020 [June 9th, 2020]
- Nissan comes out of lockdown and braces for Brexit - The Guardian - June 9th, 2020 [June 9th, 2020]
- The pandemic is being used as cover for a no-deal Brexit - The Guardian - June 9th, 2020 [June 9th, 2020]
- Brexit Britain has a much better alternative than the EU: Canzuk - Telegraph.co.uk - June 9th, 2020 [June 9th, 2020]
- Brexit deal now unlikely without extension, and time is running out - Verdict - June 9th, 2020 [June 9th, 2020]
- Britain wants to reinvent UK-China relations in the Brexit age - Quartz - June 9th, 2020 [June 9th, 2020]
- Brexit has reopened a divide within the Tories that cannot be bridged - Telegraph.co.uk - June 9th, 2020 [June 9th, 2020]
- TCW's Brexit Watch: Will Johnson cave in a second time? - The Conservative Woman - June 21st, 2020 [June 21st, 2020]
- Britain, EU need Brexit agreement in the autumn - Merkel - Reuters UK - June 21st, 2020 [June 21st, 2020]
- Westminster's actions mean devolved governments have had 'no meaningful input' in Brexit trade talks - Press and Journal - June 21st, 2020 [June 21st, 2020]
- Brexit Britain is forced to confront its inglorious past - The Star Online - June 21st, 2020 [June 21st, 2020]
- EU 'terrified' of successful UK 'on its doorstep' says Widdecombe in brutal Brexit warning - Express.co.uk - June 21st, 2020 [June 21st, 2020]
- Letter: Brexit extension would be a leap in the dark - East London and West Essex Guardian Series - June 21st, 2020 [June 21st, 2020]
- Macron to discuss Brexit with Johnson on London visit - RTE.ie - June 21st, 2020 [June 21st, 2020]
- EU FURY: Macron unleashes new Brexit threat in bid to force through 750billion bailout - Express.co.uk - June 21st, 2020 [June 21st, 2020]
- Brexit news: What would ending the transition period with no deal really mean? - Express.co.uk - June 21st, 2020 [June 21st, 2020]
- Covid-19 and Brexit: Contrasting sectoral impacts on the UK | VOX, CEPR Policy Portal - voxeu.org - June 21st, 2020 [June 21st, 2020]
- Brexit and coronavirus are stoking the fires of Welsh nationalism - The New European - June 21st, 2020 [June 21st, 2020]
- After Brexit: Will the U.S.-UK Deal Get Tariffs Down to Zero? - Yahoo News - June 21st, 2020 [June 21st, 2020]
- Brexit victory: Macron WILL cave to UK fishing stance by autumn - but there is a catch - Express - June 21st, 2020 [June 21st, 2020]
- Its official: U.K. wont require an extension of Brexit talks, even as negotiations with EU hit gridlock - MarketWatch - June 21st, 2020 [June 21st, 2020]
- With Brexit Trade Talks at an Impasse, Boris Johnson Finally Engages - The New York Times - June 21st, 2020 [June 21st, 2020]
- Johnson & Brexit Patronising Etonian Alienates the World Byline Times - Byline Times - June 22nd, 2020 [June 22nd, 2020]
- Unions Warn Trump and Brexit May Smash the Scottish Whisky Industry - Gizmodo UK - June 22nd, 2020 [June 22nd, 2020]
- Brexit risk to waste and resources increasing, says Greener UK - Resource Magazine - June 22nd, 2020 [June 22nd, 2020]
- Covid and Brexit the challenges that face new FCA boss Nikhil Rathi - Belfast Telegraph - June 22nd, 2020 [June 22nd, 2020]
- Northern Irish firms to be reimbursed for tariffs if Brexit talks fail - Tina Massey - June 22nd, 2020 [June 22nd, 2020]
- Unpopular fund sector trumps UK funds four years on from Brexit vote - Money Observer - June 22nd, 2020 [June 22nd, 2020]
- Post-Brexit and what it means for your intellectual property rights - Intellectual Property - UK - Mondaq News Alerts - June 22nd, 2020 [June 22nd, 2020]
- Brexit revives unionist and nationalist divide in Northern Ireland - The Guardian - June 22nd, 2020 [June 22nd, 2020]
- Boris to take on EU's Galileo with BETTER system US could join 'we have an opportunity' - Express - June 22nd, 2020 [June 22nd, 2020]
- France does not rule out a post Brexit no deal with UK, but those who need it most are the British - MercoPress - June 22nd, 2020 [June 22nd, 2020]
- Boris Johnson news live: PM given fresh no-deal Brexit warnings, as No 10 puts full confidence in under-pressure minister - The Independent - June 22nd, 2020 [June 22nd, 2020]
- Brexit victory: Richard Tice reveals the 'huge opportunity' ahead for fishing and farming - Express - June 22nd, 2020 [June 22nd, 2020]
- Brexit: Why hopes are rising that EU and UK could find compromise - Financial Times - June 22nd, 2020 [June 22nd, 2020]
- A new CEO, Brexit and supply-side exposure may leave Wipros Q1 earnings more dented than others - Business Insider India - July 13th, 2020 [July 13th, 2020]
- UK Government 'planning to withhold power from Scotland after Brexit transition' - HeraldScotland - July 13th, 2020 [July 13th, 2020]