The impact of Brexit on New Zealand depends on what kind of exit agreements are reached between the UK and the European Union. The published provisional deal includes a transition period which runs until the end of 2020. During this time, existing trade conditions for third parties (such as New Zealand) will continue. Below are tables showing the trade relationship between New Zealand and both the EU and the UK. The benefits of two way trade with the EU outweigh those of the UK – US$23,273m against that of the US$5,640m
March 2018 – New Zealand’s total trade balance was a surplus of $4.0 billion in the year – this surplus is up $1.3 billion from the trade surplus in the year ended March 2017.
Total exports of goods and services were $78.0 billion, while total imports were $73.9 billion.
China ($15.3 billion) and Australia ($13.9 billion) were the top export destinations.
The European Union ($13.4 billion) and Australia ($12.1 billion) were the top import sources.
Dairy products and logs to China were New Zealand’s top two export commodities by destination, earning $4.0 billion and $2.6 billion, respectively. This was followed closely by spending by visitors from the European Union ($2.2 billion) and Australia ($2.1 billion).
New Zealand’s negotiations
New Zealand is in negotiations with the UK over a FTA. According to New Zealand Foreign Affairs and Trade NZ wants the following from a FTA:
- Removing tariffs and other barriers that restrict the free flow of goods between our two countries
- Making it easier for traders of all sizes to do business in the UK, including services exporters
Strengthening cooperation and dialogue with the UK in a variety of trade and economic fields
- Reflecting our goals including progress on gender equality, indigenous rights, climate change, and improved environmental outcomes.
- Some key areas in which we will be seeking even closer cooperation with the UK under the FTA include:
- High quality primary sector and goods access to the UK’s market, such as for meat, mechanical machinery and equipment, fruit, pharmaceuticals, forestry, dairy and wine
- Helpful conditions for investment and services providers who operate between the two countries
- Commitments on progressive trade issues including environmental and labour protections, indigenous rights and gender equality.
- Parliamentary Library Monthly Economic Review – December 2018.
- New Zealand Foreign Affairs and Trade.