New Zealand companies will start to benefit from the country’s new free trade agreement (FTA) with the United Kingdom with the pact now in force, the government said on Wednesday.
“The benefits which begin flowing from the FTA today, provide a further big boost to our economy,” said New Zealand Prime Minister Chris Hipkins a statement.
New Zealand forecasts the deal with its seventh-largest trading partner will add NZ$1 billion ($634.40 million) to GDP each year and save NZ$37 million in tariffs annually. The UK estimates the deal will add 800 million pounds to its GDP.
The agreement comes as London seeks to pivot towards the Indo-Pacific in light of its departure from the European Union. It has also signed a FTA with Australia.
“This is a major delivery milestone and sits alongside the seven new or upgraded FTAs secured since 2017, which is helping to contribute to record earnings for our exporters,” said Trade Minister Damien O’Connor.
Britain has also agreed with New Zealand to increase the age of eligibility for working holiday visas to 35 from 30, letting people stay for up to three years at a time.