A free trade deal between the United Kingdom and New Zealand has surprised worldwide and even its neighboring nation Australia. The free trade agreement between NZ and United Kingdom was confirmed, but the timing was doubtful. Although the United Kingdom signed a big-hearted deal with Australia in June 2021, New Zealand’s foreign office expected a similar deal from the UK. AUKUS has informed the close relationship between Australia and the United Kingdom regarding defense, supply of goods, trade, commerce, and many more but free trade deal with NZ is the most surprising foreign policy.
Consequences and Interests Behind UK-NZ Free Trade Agreement
The world cannot find the secrets behind trade and defense deals between the UK, Australia, and United States. The Australian Prime Minister signed the Free Trade Agreement when he was on the United Kindom tour but more surprising that the Defence deal was finalized at the same time. New Zealand was expected to sign this deal by the end of August, but it didn’t happen. Indeed, a free-trade agreement favoring New Zealand country was undoubtedly possible. This trade deal would benefit New Zealand food exporters because all tariffs will be removed immediately for a maximum period of fifteen years, even for dairy and meat products. New Zealand wine industry is a large winner because of this free trade agreement. Britain will be having some essential trade perks through this deal because New Zealand willfully removed restrictions on most of the imports between each other during the 1980’s economic reforms. British analysts have found that this slightly positive trade deal can negatively impact its GDP by -0.01%. Profits to the British Economy through the FTA deal with Australia would remain universally positive. It’s a way to achieve quick success to meet Great Britain’s vision through the most straightforward and convincing explanation. According to Britain PM Borris Johnson, this trade deal would benefit the problematic-free trade nations on Earth, Australia, and New Zealand.
In March, Britain reviewed its foreign and defense policy through tilt to the Indo-Pacific. This terminology is a straightforward way to counter China’s ambition in Asia and beyond by supporting West desire. The latest high-profile tour by the UK’s career striker, including HMS Queen Elizabeth, to the South China Sea is an immediate and pointed step towards its new foreign and defense policy. The launch of AUKUS on September 15 was organized between this defense presentation in Asia. The two submarines of New Zealand participated in joint naval exercises with Britain in Guam earlier this month. UK trade deal has boosted the military picture of West and UK desire in the Indian ocean. This goodwill agreement will not impact New Zealand stabilized foreign policy. New Zealand will continue its good terms with China because of business necessity as it exports $20 billion products to China every year. New Zealand is providing only sufficient support to the West as they are suspicious of Beijing. UK-NZ trade deal is an initiative for trade-centered approach by Western traders messaging world that other excellent alternatives are available for you than China. The terms of the deal are factful to this point. From New Zealand’s observation, a good deal will provide an opportunity to start positively by disappearing the narrative set in 1973 when the UK joined the common trade with New Zealand. The narrative from the opposition was that New Zealand had sold its river to Great Britain. British interest in joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is another step after the Free Trade Agreement between Australia and New Zealand.