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Free Trade Agreement: New Zealand
21 October 2021
Lead MP
Anne-Marie Trevelyan
Debate Type
Ministerial Statement
Tags
EconomyClimateBrexitBusiness & TradeAgriculture & Rural Affairs
Other Contributors: 16
At a Glance
Anne-Marie Trevelyan raised concerns about free trade agreement: new zealand in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
EconomyClimateBrexitBusiness & TradeAgriculture & Rural Affairs
Government Statement
Yesterday, the UK agreed in principle to a free trade deal with New Zealand worth £2.3 billion last year and expected to grow under the agreement. The deal aims to strengthen ties between the UK and NZ, taking on global challenges like climate change and digital trade while deepening access for British businesses. It will remove existing tariffs as high as 10% on a range of goods, aiding UK exporters in the growing New Zealand market. Negotiations involved close consultation with businesses, farmers and stakeholders. The agreement is part of the Government’s commitment to level up all parts of the country by bringing trade benefits. Once finalised and signed, it will be scrutinized thoroughly before ratification, ensuring high standards are upheld through the Trade and Agriculture Commission's expert advice. This deal represents a significant step towards joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), further positioning the UK in high-growth global markets.
Emily Thornberry
Lab
Islington South and Finsbury
Question
Thornberry questions the Government's rejection of TAC recommendations to establish a national framework of standards for determining tariff reductions from Australia and New Zealand. She asks why tariffs are being reduced on products described by DEFRA as 'imports of lower welfare' despite the proposed differentiation in labelling practices.
Minister reply
The minister does not provide an explicit answer within the provided text, but it is implied that a response would address Thornberry's concerns regarding the use of standards frameworks and tariff reductions.
Emily Thornberry
Lab
Islington South and Finsbury
Question
Thornberry questioned the impacts of these trade deals on UK farming, noting significant tariff reductions that may lead to increased competition from New Zealand imports. She also asked why tariffs were not differentiated based on welfare standards as proposed for product labelling.
Minister reply
The Minister responded by affirming that 96.7% of tariffs will be removed upon entry into force and highlighted the phased approach to beef, sheepmeat, butter, and cheese imports. She emphasised that different countries manage their environmental situations differently but stressed no compromise on standards for food coming into the UK.
Martin Vickers
Con
Brigg and Immingham
Question
Vickers welcomed the minister's statement, particularly the encouragement of small businesses to enter export markets. He also asked about extending trade deals with Commonwealth friends.
Minister reply
The Minister acknowledged support for SMEs through initiatives like the Export Support Service and the Open Doors campaign. She encouraged Members to champion local businesses as opportunities arise in Commonwealth countries.
Drew Hendry
SNP
Inverness N & Ross
Question
I have looked hard to try to find something to welcome, so let me start with a positive: we welcome the promotion of trade in environmental goods and services, although naturally the detail will need to be reviewed. The UK Government’s assessment shows that an FTA with New Zealand would bring zero benefit and, indeed, could lead to a contraction in GDP. The Under-Secretary of State for International Trade, the hon. Member for Finchley and Golders Green (Mike Freer) talked earlier about timescales and giving it time, so can the Secretary of State tell us how long it will take for this deal to make up even 0.5% of the 14% drop in Scottish food and drink exports to the EU ? Ministers have clearly shown that they need help in understanding Scotland’s trade, so will the Secretary of State ensure that the Scottish Government are involved in the detail of the agreement? Bilateral trade has important impacts and implications for services, so given the sector’s importance to Scotland, it is vital that the Scottish Government are also involved in those details. The deal, as it stands, provides protections for meat imports only by phasing reductions to zero, which is opposed by the National Farmers Union. Will the Secretary of State look to build further protections into the agreement, such as tonnage quota systems and percentage controls? According to the Government’s figures, the deal will cut employment in our farming communities, but for what—possibly about £112 million? That is about half the cost of the Prime Minister’s new yacht. Is that really a good deal?
Minister reply
Some of our most fantastic brands and products come out of Scottish businesses and all the trade deals that we are putting together and negotiating have some of those at the top of our call list. We want to make sure that that continues by opening up more markets, which will provide opportunities for fantastic Scottish whisky, amazing Scottish beef and many other products, many of which are green products that are helping to solve some of the climate challenges that we all face. We want to make sure that those businesses can export not only to our EU partners but more widely, and we want to see that grow. Built into the New Zealand agreement in principle are a clear set of quotas that grow over a number of years to ensure, on the hon. Gentleman’s point, that we can see those changes in imports work well with our own commerce. As I make new trade deals, I want to ensure that our farmers are finding new markets for their products. We are seeing, as I mentioned in my statement, a growth in markets across Asia, where the call for high-quality produce is growing by the year, and we want to make sure that our farmers and our businesses are part of that success.
Robbie Moore
Con
Keighley and Ilkley
Question
May I use this opportunity to welcome my right hon. Friend to her place? I wish her all success, and I welcome this statement. Many of my constituents are deeply concerned about climate change. Could the Secretary of State outline how this new free trade agreement will promote our efforts to tackle climate change as well as growing our respective economies?
Minister reply
As I said earlier, it is absolutely critical to this Government that, as we find ways to grow our businesses and grow our economic growth, we also, right alongside, continue to champion, as we are with the presidency of COP26, the solutions that we all need to find to meet that climate challenge. This is a really exciting free trade agreement in which there is a very strong environment and climate change chapter, where we set out very clearly our mutual commitment to the Paris agreement and all that goes with that, and the challenge of keeping 1.5° C alive. For all our constituents, we should have confidence that that mutual support for meeting that challenge is absolutely embedded in this deal. We will have the opportunity, as our innovators and our businesses come up with new solutions, to take those goods and services to New Zealand with no tariff limitations.
Daniel Zeichner
Lab
Cambridge
Question
Cambridge people care deeply about the quality of their food, and they will want to know that anything imported is produced to our high standards. I listened closely to the Secretary of State’s response to my right hon. Friend the Member for Islington South and Finsbury (Emily Thornberry), and she did not address the question of the framework standards suggested by the previous Trade and Agriculture Commission. So can I ask her again: will the Government be adopting that framework or not?
Minister reply
As I have said, we recognise the importance that both countries attach to high welfare standards. New Zealand and the UK have committed together to a specific chapter on animal welfare reaffirming those key points about food production. Indeed, to the hon. Gentleman’s point, we will absolutely ensure always that goods coming into the UK do not fall below the standards that we set and that we want to ensure for the safety of our constituents.
Craig Mackinlay
Con
Havant
Question
I congratulate my right hon. Friend on achieving this agreement in principle. Can I assume that it follows very similar lines to the agreement with Australia, so that we can have full triangulation for the UK with Australia and New Zealand, between whom there is already a unique relationship in their trade? Could she explain how this will assist and help in an even further expansion of free trade for this country through the CPTPP accession negotiations?
Minister reply
My hon. Friend raises a really important point. We have submitted our application to become a member of the CPTPP, which is a group of 11 countries that work together with a free trade agreement. We are the first new member to apply, and we are presently going through what I can only describe as an exam process as our legislative requirements are tested against its framework. It is incredibly important. New Zealand and Australia are two key partners within the CPTPP, and in having these two first free trade agreements with them, we are setting out very clearly what is important to us. As I say, with this New Zealand agreement today, we are setting out all the areas that are really critical to us and indeed to our businesses. It shows the importance that we will continue to give to what free and fair trade means. It is ensuring that our businesses are working in a fair and competitive environment so that they can sell their fantastic produce.
Margaret Ferrier
Ind
Rutherglen
Question
Taking a piecemeal approach to trade agreements is having an impact in many sectors, but especially for farmers. What assessment have the Government made of the cumulative effect of all these free trade agreements on sectors such as farming?
Minister reply
The cumulative effect of more and more free trade deals is the opportunity for our fantastic businesses that provide goods and services to reach many more markets. The huge growth in population, and wealthier communities across Asia in particular, are markets that we want our businesses to have every opportunity to access, because we believe that our products are some of the best in the world.
Saqib Bhatti
Con
Meriden
Question
I congratulate the Department and the Secretary of State on this announcement. I chair the all-party group for small and micro business, so will the Secretary of State set out what the trade deal means for small and microbusinesses, which are the backbone of our country, including in my constituency of Meriden?
Minister reply
Our small and medium-sized businesses, and indeed our micro, small and medium-sized businesses—known as MSMEs if said quickly—make up 95% of the backbone of our businesses. At the G20 trade talks last week, we discussed that area in some detail, because all nations across the G20 know that a business might be a microbusiness this year, but in 10 years’ time it could be a major business in any of those economies. As we build these trade deals, we want to ensure that things such as reductions in tariffs and the opening up of digital trade, mean opportunities for our small businesses today, so that they have the opportunity to become great trading businesses of the future.
Chi Onwurah
Lab
Newcastle Central
Question
The Secretary of State has a beautiful north-east constituency, and she knows that, like many of my constituents, I take great pleasure in the gorgeous north-east landscape with its wild hills and beautiful coastline. That is a consequence of small-scale farming, with high standards of animal protection, environmental protection, and sustainability. What does she say to north-east farmers who are facing huge levels of unfair competition from massive increases in New Zealand imports to this country? Will she guarantee that not one north-east farmer will fail as a consequence of this agreement?
Minister reply
The hon. Lady and I agree that Northumbrian lamb is, without a doubt, best in the world, and I am happy to say that to any New Zealander who wants to take me on and challenge me. We have meat imports from the EU that are much greater than those we now receive from New Zealand, and they will continue to be. As I have said, New Zealand has not taken up its quotas already, and I am not at all concerned that the high quality produce made by Northumbrian farmers, or indeed in any other part of our wonderful UK, will be put at risk. We are selling some of the best quality produce in the world, and that will continue to be the case. As we make new free trade deals, we will open up more markets for farmers to use.
Andy Carter
Ind
Growth
Question
I congratulate the Secretary of State on the agreement reached with New Zealand. She will know that Warrington has some of the finest gin production anywhere in the world. What will this agreement mean for small spirit producers in Warrington?
Minister reply
I did not know that Warrington was the centre of gin, but now I have discovered that I will have to go and visit as soon as possible. The trade deal strips away tariffs on all goods with rules of origin, and clearly a producer of Warrington gin, which absolutely is a Warrington gin, will have the opportunity to take their goods to market in New Zealand without tariffs. I look forward to championing Warrington gin, and all other forms of British gin.
Jim Shannon
DUP
Strangford
Question
What discussions have taken place with Ministers in the Department for Agriculture, Environment and Rural Affairs at the Northern Ireland Assembly to assess the impact on and benefits for Northern Ireland agriculture from this new deal? What protections are in place for our farming sector?
Minister reply
My ministerial colleagues and I have regular discussions with our counterparts in all the devolved nations. As we move towards finalising the agreement, there will be refinement to ensure that all concerns of the nations are crystallised into the final deal.
Question
Will she please say a little more about the effect on manufacturing businesses and jobs, particularly in the north of England? What support may be available for those businesses that want to take advantage of the agreement and export to New Zealand?
Minister reply
This goes in both directions. The Department is there to support and guide small businesses across constituencies. Trade commissioners and trade envoys will help champion these businesses, ensuring they become part of the landscape of New Zealand’s markets.
Question
The National Farmers Union of Scotland has expressed great anger over this latest trade deal, describing it as a slow journey to allow New Zealand unfettered access to food and drink UK markets. Will the Secretary of State acknowledge these concerns?
Minister reply
The UK has some of the finest standards in the world. Work continues on setting out new frameworks for farming communities since leaving the common agricultural policy, ensuring they have support to take advantage of opportunities brought by free trade deals.
Ben Lake
PC
Ceredigion Preseli
Question
Given that the Government’s own analysis suggests that the number of people working in agriculture may be negatively impacted by this deal, how will Ceredigion farmers benefit from it?
Minister reply
Farmers will have opportunities to reach out and build new relationships. New Zealand already has an enormous WTO quota which it does not use with the UK because it exports a lot of its sheepmeat to Asian markets.
Shadow Comment
Emily Thornberry
Shadow Comment
The shadow response critiques the agreement's impact on farming communities, citing government forecasts showing reductions in growth and jobs. The deal allows New Zealand to export large quantities of products like lamb, butter, and beef tariff-free, undermining UK farmers' competitiveness and welfare standards. Thornberry questions why higher tariffs aren't maintained for lower-welfare imports while such distinctions are made for labelling purposes. She also challenges the Government's decision not to let the newly formed Trade and Agriculture Commission (TAC) assess these deals for their impact on farming competitiveness and welfare standards, as previously promised.
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