The price of Kiwi wine is set to fall after the UK struck a free trade deal with New Zealand.
An agreement to cut red tape on goods was agreed in-principle by Boris Johnson and his counterpart Jacinda Ardern during a Zoom call on Wednesday,
Tariffs will be removed on UK exports including clothing, ships and bulldozers, and on popular New Zealand imports including wine, honey, kiwi fruits and lamb.
Boris Johnson hailed the arrangement as ‘great’ following 16 months of post-Brexit negotiations.
But according to the government’s own estimates, the agreement itself is unlikely to boost UK growth.
Overall, only a tiny proportion of UK trade is done with New Zealand – less than 0.2%.
Ministers hope it is a step towards joining a trade club with the likes of Canada and Japan.
But critics said the deal could hurt UK farmers and lower food standards.
The National Farmers’ Union (NFU) said it was worried about the implications of an agreement it said ‘offers nothing in return’ to British farmers.
Under the deal, New Zealand Exporters will be able to send 35,000 tonnes of lamb to the UK tariff-free for the first four years, rising to 50,000 tonnes for 10 years before quotas are removed altogether.
The NFU warned that British farming interests have been sacrificed in order to secure deals with Australia and now New Zealand.
‘We will be opening our doors to significant extra volumes of imported food – whether or not produced to our own high standards – while securing almost nothing in return for UK farmers,’ said its president, Minette Batters.
‘We should all be worried that there could be a huge downside to these deals, especially for sectors such as dairy, red meat and horticulture.
‘The government is now asking British farmers to go toe-to-toe with some of the most export orientated farmers in the world, without the serious, long-term and properly funded investment in UK agriculture that can enable us to do so.
‘This is why it is very, very difficult for the NFU to show any support for these deals.
‘They involve significant upsides for farmers on the other side of the world who can now access our hugely valuable market but contain little discernible benefit for UK producers, either at home or overseas.’
Labour said that according to the government’s own analysis the deal would cost jobs in agriculture and deliver no additional growth.
Shadow trade secretary Emily Thornberry said: ‘It is a deal whose only major winners are the mega-corporations who run New Zealand’s meat and dairy farms, all at the expense of British farmers who are already struggling to compete.
‘But for British jobs, growth and exports, this deal is yet another massive failure.’
She cited figures from a 2020 government analysis that suggested a deal would add between -0.1% and 0% to GDP over 15 years, compared to 0.35% to New Zealand’s, and add £112m to UK exports.
The government said high-quality New Zealand products from Sauvignon Blanc wine to Manuka honey and kiwi fruits will be cheaper to buy because of the deal.
The terms also mean that UK workers such as lawyers and architects will also be able to work in New Zealand more easily.
Trade between the two nations was worth £2.3 billion last year, and the Department for International Trade said that is set to grow under the deal.
The department said the deal would ‘remove barriers to trade and deepen access for our advanced tech and services companies’, and it would also make it easier for small businesses to take advantage of the New Zealand market.
Boris Johnsons said: ‘This is a fantastic week for Global Britain. On Tuesday, we raised almost £10 billion in investment for the industries of the future, and this new deal will help drive green growth here and on the other side of the world in New Zealand.’
Ms Arden added: ‘The United Kingdom and New Zealand are great friends and close partners. The historical connections that bind us run deep.
“This world-leading free trade agreement lays the foundations for even stronger connections as both countries embark on a new phase in our relationship. It is good for our economies, our businesses and our people.’
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