Source: New Zealand Parliament – Hansard
IBRAHIM OMER (Labour): Thank you, Madam Speaker. It’s a pleasure to take a call on the United Kingdom Free Trade Agreement Legislation Bill. The Minister, the Hon Damien O’Connor, has described this as a gold standard agreement that is going to benefit New Zealand a lot. It’s an agreement that is going to deliver for our environment, for our small business enterprises, for our women, and for our indigenous people as well.
The UK is the sixth-biggest economy in the world, which is worth about $3.7 billion, and New Zealand has everything to win from this agreement. It will also strengthen the relationship that’s already warm and strong as well. This agreement means that the UK will eliminate all tariffs on New Zealand exports, with duties removed on 99.5 percent of current trade from entry into force. This will provide New Zealand exporters with more favourable access to the UK market. The agreement will save approximately $37 million every year on goods exports. The economic modelling estimates that the UK exports will increase by 50 percent. This will provide a boost to New Zealand GDP by about $700 million, and $1 billion once it’s fully implemented. It will also cut red tape, allowing New Zealand exports into the UK market on a level playing-field—duties and all tariffs removed on 99.5 percent.
Climate change is a big winner in this agreement. It eliminates fisheries subsidies and takes steps to eliminate fossil fuel subsidies as well. It promotes sustainable agriculture and underlines the urgent need to address climate change. Animal welfare provisions are also included and recognise both countries’ commitments—New Zealand’s first bilateral trade deal to include an article on climate change. This also allows the New Zealand Government to reserve the right to regulate and target interests. Visas for business persons make it easier for people to get into the UK, with a specific category that includes their family members as well. The investment provisions provide certainty and stability regarding market access in both countries. Intellectual property agreements, to extend the copyright terms by 20 years—15 years to implement these changes.
As many have said, this is a big deal for New Zealand. We are a trading nation at the bottom of the Pacific Islands and we have a lot to gain from this agreement. I’d like to thank the Minister for his hard work. Actually, he travelled when COVID was still raging around, potentially risking his life, but he prioritised this and he got it over the line. I’d like to thank the officials, who worked hard, who worked around the clock to make sure that this deal was reached. Globalisation has made everything, movement from countries to countries, from continents to continents, very smooth, and freight is very competitive. The UK leaving the European Union means that New Zealand has managed to get this opportunity to sign this agreement with the UK. So, again, I’d like to commend everyone who worked hard on this and made this possible. It’s a good day for New Zealand, it’s a winner for New Zealand, and I commend it to the House.
