Talk of fast Aussie Brexit trade deal makes headlines in Britain but NZ update fails to excite

Thursday, 1 August 2019

Trade Minister David Parker has not provided fresh commentary on how quickly a trade deal could be done with post-Brexit Britain.

New Zealand has kept itself out of the limelight over a post-Brexit trade deal with Britain after talks in London.

British and Australian media this week trumpeted comments from Australian trade minister Simon Birmingham that a trade a deal between Britain and Australia could be struck 'within weeks' of Britain potentially exiting the European Union on October 31, after talks with his newly-appointed British counterpart Liz Truss.

Britain's pro-Brexit Express heralded those comments under the headline 'Brexit deal between UK and Australia 'within weeks'! Boris brings 'new opportunity''.

But New Zealand Trade Minister David Parker did not refer to timelines in a statement on his own talks with Truss on Wednesday, instead simply welcoming a 'reaffirmation' by Truss of 'the shared commitment to move ahead quickly on a free trade agreement as soon as the UK leaves the EU'.

**READ MORE:

UK international trade secretary Liz Truss backed 'remain' in the 2016 Brexit referendum but said a year later than she had changed her mind.

* British PM Boris Johnson set to launch $186 million no-deal Brexit campaign

* Free trade negotiations between New Zealand and European Union officially launched

* Ambitious trade agreement with EU will benefit all Kiwis**

'New Zealand and the UK have deep and long-standing ties built on a shared history and shared values,' Parker said in the statement that was barely reported in Britain.

'That, and our track record as an honest negotiating partner, means it is natural we should be an early first choice for the UK to form an even closer trade partnership – through the negotiation of a high quality, comprehensive and inclusive FTA – shortly after its departure from the EU.'

Truss said she wanted 'New Zealand to be one of the first free trade agreements the UK signs as we prepare to become an independent trading nation once again'.

Parker again avoided referring to a timeline for a concluded deal when asked if he believed an agreement within weeks of Brexit was possible, while reiterating that he had made clear New Zealand was ready to move ahead quickly on an FTA negotiation 'as soon as the UK is in a position to do so'.

'There are already a number of areas where we have similar views, so this provides a good basis to build on. There is strong commitment on both sides,' he added.

New Zealand has relatively few trade tariffs compared to EU member states including the UK, at present.

The World Bank estimated weighted, average tariffs on imported products were 1.4 per cent in New Zealand compared to 1.8 per cent in the UK and elsewhere in the EU, in 2017 – which indicates New Zealand is the more 'open' of the two economies and that it could potentially gain more from free trade.

But Parker said that although reducing tariffs was important, 'an agreement of this kind can deliver benefits in a range of areas'.

Those areas included 'sustainable development, services and the digital economy'.

A trade deal also had the potential to set 'a high-quality precedent' and open up broader connections for the UK across the wider Asia Pacific region, he said.