British businesses could save thousands of pounds under the new UK-New Zealand trade deal, it has been revealed.

The report comes after the latest round of trade talks ended in July, paving the way towards the ratification of the agreement.

According to the Department for International Trade (DIT), the deal could save British businesses and consumers significant amounts of money by slashing tariffs on a range of commonly traded goods.

This includes British chocolate, gin, cars, and clothes, as well as New Zealand products, such as wine, food and drink, which currently attract tariffs of up to 10 per cent.

Experts say the deal could also support the UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), one of the largest free-trade areas in the world.

Access to the £9 trillion market would cut tariffs for many UK industries, including tech, food and drink, and automotive, making products and services cheaper to import and export.

The UK formally applied to join the partnership in February this year.

Commenting on the New Zealand agreement, Secretary of State for International Trade Liz Truss said: “We are working round the clock to get this deal done in the coming weeks. We are both big fans of each other’s high-quality products, so this could be a huge boost that allows British shoppers to enjoy lower prices and British exports to be even more competitive.”

Welcoming the deal, Dominic Goudie, Head of International Trade, the Food & Drink Federation, added: “We hope to see the UK conclude an ambitious trade deal with New Zealand which removes tariffs facing UK exports of quality manufactured food and drink.”

UK-New Zealand trade was valued at around £2.3 billion in 2020. This included more than £30 million of British fashion exports and over £133 million of British car exports.

For help and advice with related matters, please get in touch with our team today.