The UK’s free trade agreements with Australia and New Zealand come into effect on May 31.
The United Kingdom’s free trade agreements with Australia and New Zealand will come into effect on May 31 as Commonwealth allies deepen relations ahead of the coronation of King Charles III.
British Prime Minister Rishi Suna, Australian Prime Minister Anthony Albanese and New Zealand Prime Minister Chris Hipkins made the announcement as the three leaders prepare for talks in London ahead of the coronation.
King Charles is the official head of state of Australia and New Zealand, although the current leaders of the southern hemisphere countries are personally in favor of severing ties with the monarchy.
“The entry into force of our new trade agreement marks a new chapter in the great friendship between our two countries,” Sunak said in a statement Thursday.
“This deal will open up new opportunities for businesses and investors in New Zealand and the UK, fueling growth, boosting jobs and most importantly building a more prosperous future for the next generation.”
Hipkins said the “gold standard” trade deal reflected the close relationship between the UK and his country.
“This is a gold standard free trade agreement, reflecting the close relationship between our two countries. Market access results are among the very best New Zealand has achieved in a trade deal,” said Hipkins.
Under the agreements, more than 99 percent of all Australian and New Zealand exports to the UK will be duty-free.
New Zealand officials estimate the deal will increase the size of the country’s economy by up to 1 billion New Zealand dollars ($629 million), mainly by boosting the sale of agricultural products such as wine, beef and butter.
British officials estimate the deal will boost the country’s gross domestic product (GDP) by £800 million ($1 billion).
The deals also expand the countries’ respective working holiday arrangements, making it easier for young job seekers to get into work.
The UK has been keen to find new markets for its exports since leaving the European Union, the world’s largest single market area, in 2020 following a hotly contested referendum.