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Trade between the two countries was $2.8 billion in 2018, with the UK exporting $1.4 billion in goods and services to New Zealand during the year. Truss added in his comments on POLITICO that an agreement would be a step towards a free trade agreement with a group of Asia-Pacific states. “New Zealand and the United Kingdom enjoy a close relationship, including strong trade and economic relations, shared values and traditions, and a common history. A free trade agreement will be another important step in this report. However, the EU does not yet have a free trade agreement with New Zealand, although talks between the two sides began in June 2018. “Although it`s over 11,000 miles away, we couldn`t be much closer in terms of values and friendship,” Truss said. “We have a proud shared history and a common commitment to promote rules-based free trade, fight protectionism and defend international rules.” “We think we`re in great shape and ready to go – we only need the British to realize that we can do more than just a trade deal at the same time.” Until the end of the transition period (currently 31 December 2020), the UK will remain in the EU, including the European internal market and customs union, and NZ trade will not change. The UK says it wants to join a free trade agreement involving 11 Asia-Pacific countries. Trade between the UK and the EU will change. From a customs point of view, the United Kingdom is treated as a “third country” whether or not a trade agreement is concluded. This means that exports between the EU and the UK require customs declarations, formalities and controls as well as customs duties paid. This can have an impact on NZ businesses trading between the UK and the EU. A spokesperson for the Department of International Trade said of The Peters interview: “We are delighted with the possibility of a free trade agreement.” “We have taken another step towards a comprehensive trade agreement to boost trade and investment between our like-minded economies.” “We look forward to a free trade agreement that will provide more opportunities for small and medium-sized enterprises, Maori exporters and our regional communities, in line with our Trade for All objectives,” he said.

The equivalent of Truss in New Zealand, David Parker, wrote last week in a statement in the Times that they believe trade relations “are not in line with the rest of our relationship.” If the UK and the EU fail to reach an agreement on their trade terms after 31 December 2020 and if it is not agreed to extend the transitional period, a “non-deal” will be possible on 1 January 2021. “In addition to our negotiations with Australia and Japan [a New Zealand agreement] is a step towards membership of the CPTPP – a high standard and regulatory trade area that encompasses some of the world`s most dynamic economies,” Truss said. “DIT is focused on securing free trade agreements, which guarantee benefits for every region and nation in the UK, and talks are ongoing.” New Zealand Customs – including our london and Brussels-based advisers – is working closely with the UK government as well as the European Commission and EU countries to facilitate trade during Brexit and to keep pace with Brexit. Both sides stressed their commitment to a timely, high-quality, comprehensive and inclusive trade agreement.

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