UK agrees trade deal with New Zealand

On October 20th 2021 the British Government agreed a Free Trade Deal with New Zealand.

The agreement is not going to make any significant difference to the UK’s GDP, currently trade between the two countries accounts for less than 0.2% or £2.3 billion last year with a projected increase by 30% by the end of the decade.

Why does the United Kingdom / New Zealand trade deal matter to the UK?

By signing this deal along with the deal signed with Japan last year and the draft agreement with Australia in June of this year it is hoped that the UK’s application to join the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) will be looked upon in a more favourable light given that all three of these countries are members.

The combined GDP for the current eleven members of the CPTPP last year was £8.4 trillion which is a good incentive for the British to get membership over the line.