The FTA is set to boost NZ's economy by up to $1bn, the trade and export growth minister
Parliament has introduced legislation to adopt the free trade agreement (FTA) recently signed by New Zealand and the UK, Trade and Export Growth Minister Damien O’Connor announced.
The United Kingdom Free Trade Agreement Legislation Bill (145−1) aims to amend several laws, authorising the government to implement its obligations under the FTA. The deal − which was finalised last March − substantially cuts costs for exporters and businesses, and provides greater access to the UK market as New Zealand recovers from the COVID-19 pandemic.
“This FTA is a gold-standard agreement and one of the best deals we’ve ever negotiated,” O’Connor said. “It will boost our economy by up to $1bn and provide us further economic security.”
If passed, the bill will amend the Copyright Act 1994, the Dairy Industry Restructuring Act 2001, the Overseas Investment Act 2005, the Overseas Investment Regulations 2005, the Tariff Act 1988, the Tariff, and the Customs and Excise Regulations 1996. It will extend the scope of a performer’s property rights in sound recordings of their performances under the Copyright Act 1994 to authorise the playing of those recordings in public, and will also increase the investment screening threshold from $100m to $200m for non-government investors from the UK.
The legislation will give effect to the rules of origin applicable to imports into New Zealand that originate from the UK and confer to investors from the UK the preferential monetary threshold for screening significant business assets. It will also execute New Zealand’s commitment to administer a three-year transitional quota for apple exports.
Moreover, the bill will apply the preferential tariff rates under the FTA, such that all tariffs on UK exports to New Zealand will be removed. It will also implement the transitional quotas on dairy products exported to the UK that originate from New Zealand.
O’Connor confirmed that the bill will undergo first reading and the select committee process in the following weeks. The legislation is expected to be ratified by the end of the year.
