By Ka Long Tung | Contributor
Prime Ministers Boris Johnson and Jacinda Ardern agreed on a trade deal during a video call on October 20, that would see British consumers pay less for imports from New Zealand. Critics say the deal wonÔÇÖt benefit the UK very much and may even put farmers at risk.┬á
British exports such as cars, buses, and construction vehicles will benefit from the removal of 10% tariffs, while clothing, chocolate, cheese, and crisps will no longer be imported at a 5% tax.
LabourÔÇÖs shadow international trade secretary, Emily Thornberry, said the total value businesses stand to gain from the agreement would be ÔÇ£less than half the cost of Boris JohnsonÔÇÖs new yachtÔÇØ.┬á
Thornberry went on to say, ÔÇ£It is a deal whose only major winners are the mega-corporations who run New ZealandÔÇÖs meat and dairy farms, all at the expense of British farmers who are already struggling to compete.ÔÇØ
Trade between the two countries was worth ┬ú2.3bn last year, equivalent to just 0.5% of the UKÔÇÖs commerce with the European Union. According to a report conducted by the government itself, a trade deal with New Zealand could have ÔÇ£limited effectsÔÇØ – between -0.01% to 0.01% – on the UKÔÇÖs GDP in the long run.┬á
Minette Batters, the National Farmers Union president, echoed the criticism, stating that ÔÇ£the government is now asking British farmers to go toe to toe with some of the most export-oriented farmers in the world, without the serious, long-term, and properly funded investment in UK agriculture that can enable us to do so.ÔÇØ
ÔÇ£ItÔÇÖs incredibly worrying that weÔÇÖve heard next to nothing from the government about how it will work with farming to achieve this.ÔÇØ
Despite all the criticism, the trade deal is expected to pave the way for trade agreements with more countries and help to counter New ZealandÔÇÖs reliance on China.
New Zealand, Australia and Japan are members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Last year, the UK signed a deal with Japan. It then signed a draft trade agreement with Australia in June. The trade deal with New Zealand may boost the UKÔÇÖs appeal to the CPTPP.┬á
Ramzan Karmali, BBC business reporter wrote: ÔÇ£The trade deal the UK really wants is with the US.ÔÇØ
New Zealand opposition leader Judith Collins told the Guardian earlier this month that by not providing free trade agreements, the US and UK were ÔÇ£leaving the door openÔÇØ to Chinese dominance in the Indo-Pacific region. This can also partially explain why the deal was struck.
