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New Zealand signs free trade agreement with UK

01 March 2022 By Arabella Mileham

The New Zealand wine industry has welcomed the historic new UK free trade agreement that it says will help encourage exporters to focus on the UK.

New Zealand and UK, two flags waving against blue sky. 3d image

Following the announcement of the deal this morning, New Zealand Winegrowers said it was a very positive outcome for the New Zealand wine industry that would support future growth in the market.

“This will help remove technical barriers to trade, and minimise burdens from certification and labelling requirements,” Philip Gregan, CEO of New Zealand Winegrowers said. “The UK is New Zealand’s second largest export market for wine, with exports valued at over $400 million over the past 12 months. The agreement will reduce trade barriers on New Zealand wine exports to the UK, which will make a big difference for many within our industry.”

“We thank Ministers and officials for their support, and conduct of negotiations in challenging circumstances due to the impacts of COVID-19.”

The deal was agreed in principle back in October, but was made official today.

WSTA chief executive Miles Beale also welcomed the “modern” FTA, saying it would support UK jobs and investment as well as leading to a greater choice for wine and spirit consumers.

“It will not only eliminate tariff barriers, but permanently removes wine import certification – great news for both the wine and spirit industry trade,” he said.

He applauded the long-term certainty and flexibility it would bring to importers and independent wine and spirits merchants. He pointed out that over £750m worth of NZ wine was sold in the UK each year while the UK exported £15m worth of spirits to New Zealand each year. Gin growth has doubled in the last three years.

“The establishment of a new wine and distilled spirits working group is a dynamic innovation that will also ‘future-proof’ the agreement,” he added.

It follows the signing of free trade deal between the UK and Australia last June, which agreed that tariffs on wine and other goods should be wound down over a 15 year period.

Previously wines imported from Australia and New Zealand into the UK were subject to a tariff that worked out at about 10-12p on a bottle of still wine and 22p on sparkling wine, while British spirits – primarily gin and Scotch – being exported down under saw an extra 5% of the value of their products slapped on top.

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