New Zealand and the United Kingdom have reached agreement in principle on the key elements of a new high quality, comprehensive and progressive free trade agreement (FTA).
Both countries are committed to the removal of all customs duties on bilateral trade, with most tariff lines, covering the vast majority of current exports, being fully liberalised on entry-into-force of the agreement. Other mechanisms will facilitate trade and address non-tariff barriers between the two countries.
Summerfruit exports to the United Kingdom will certainly benefit from this new FTA between the United Kingdom and New Zealand.
Based on the agreement in principle, fresh apricots, nectarines, peaches, and plums (including sloes) are set to be tariff free at entry-into-force. The duty on cherries is set to be progressively reduced over three years.
The current tariff rate for summerfruit to the United Kingdom is 20%, so all but cherries will be at 0% at entry-into-force. The cherry tariff will be reduced by four equal cuts to the current duty rate. The first reduction will occur at entry-into-force, the second at year 1, third at year 2, fourth at year 3, and then free onwards.
Entry-into-force will likely occur next year and follow the phases described in the Ministry of Foreign Affairs and Trade's timeline below.
