UK Prime Minister Boris Johnson and New Zealand Prime Minister Jacinda Ardern signed a free trade deal on 20 October, but what does it mean for the apparel industry?

The UK and New Zealand Free Trade deal, which was agreed earlier this week (20 October) will include removing UK exports tariffs as high as 10% from apparel and footwear.

The new trade agreement is expected to boost British exporters and small businesses as both countries ditch tariffs on goods and cut red tape. It is also expected to provide more opportunities for UK citizens to live and work in New Zealand and offer deeper cooperation on digital trade and climate change.

What does the new UK free trade deal with New Zealand mean for the apparel industry?

Director of international business for the UK Fashion and Textile Association (UKFT) Paul Alger told Just Style exclusively: “New Zealand is a relatively small market for UK companies but there is the opportunity to import raw materials into the UK to make the UK’s supply chain more efficient, such as wool and cotton.

“We also have to look at these free trade agreements in the round and see them in the context of geopolitical relationships between the UK and the rest of the world. In that area, this agreement and other agreements that we hope to see, for example including Australia, are more important diplomatically than they might be economically.”

Alger points out that as the UK has left the European Union, it makes sense to forge new commercial and diplomatic arrangements with other English-speaking countries around the world.

He says: “On that basis, agreements with New Zealand and Australia are an important part of the UK signalling its openness to trading with the rest of the world, and with Asia-Pacific in particular.”

What is the new UK deal with New Zealand?

UK-New Zealand trade was worth GBP2.3bn (US$3.2bn) last year and is set to grow under the deal. The deal is said to remove barriers to trade with the end of tariffs on UK exports, including apparel and footwear.

This is expected to give British exporters an advantage over international rivals in the New Zealand import market  which is expected to grow by around 30% by 2030.

The agreement will also deepen access for advanced tech and services companies, while making it easier for smaller businesses to break into the UK and New Zealand markets.

The comprehensive agreement was agreed Prime Ministers of both countries via video call on 20 October following 16 months of talks by Department for International Trade negotiators.

The deal follows advanced free trade agreements already struck with Australia and Japan and it is hoped it will help to pave the way for the UK to join the Trans-Pacific Partnership (CPTPP), a free trade area of 11 Pacific nations with a GDP of GBP£8.4 trillion (USD$11.6 trillion) in 2020.

Speaking about the new trade agreement Prime Minister Boris Johnson said: “It will benefit businesses and consumers across the country, cutting costs for exporters and opening up access for our workers.”

New Zealand Prime Minister Jacinda Ardern added: “This world-leading free trade agreement lays the foundations for even stronger connections as both countries embark on a new phase in our relationship. It is good for our economies, our businesses, and our people.”