The UK-New Zealand trade relationship has reached a significant milestone, with bilateral trade swelling to a record £4.0 billion in 2025. According to a joint statement by the Secretary of State for Business and Trade and New Zealand's Minister for Trade and Investment, this substantial growth is attributed to the successful implementation of their Free Trade Agreement (FTA), which has been in force since May 31, 2023.
The agreement's benefits are being felt across both countries, with approximately 91.5% of goods traded between the UK and New Zealand making use of preferential tariffs available under the FTA in 2025. This translates to a significant reduction in costs for businesses, enhancing their competitiveness and driving trade growth. For instance, had the £1.4 billion worth of UK imports from New Zealand been subject to standard Most Favoured Nation (MFN) tariff rates in 2025, importers could have faced an additional £98.4 million in duties.
A breakdown of the data reveals that 92.4% of goods imported into the UK from New Zealand benefited from preferential tariffs between January and December 2025, while 88.5% of imports into New Zealand from the UK did the same. These statistics underscore the FTA's effectiveness in delivering tangible benefits to businesses and consumers.
Ministers also discussed ongoing cooperation on various aspects of the FTA, including a tariff rate quota data sharing arrangement between the New Zealand Meat Board and HM Revenue and Customs. They noted progress towards improving trade terms for dealcoholised and partially dealcoholised wines under a Joint Understanding, with further commitments to be made over the next year. Additionally, significant headway was reported on reviewing the digital chapter of the FTA, which is expected to support digital trade growth.
The meeting also touched upon broader trade initiatives, including the signing of a new Double Tax Agreement designed to eliminate double taxation and enhance certainty for taxpayers. The UK's intention to formally join the Global Trade and Gender Arrangement (GTAGA) was welcomed, underscoring its commitment to ensuring that international trade benefits everyone. Ministers reaffirmed their commitment to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), stressing the importance of expanding and upgrading the agreement in an increasingly uncertain global environment.