The United Kingdom’s free trade deals with Australia and New Zealand will enter force on May 31 as the Commonwealth allies deepen relations ahead of the coronation of King Charles III.
UK Prime Minister Rishi Suna, Australian Prime Minister Anthony Albanese and New Zealand Prime Minister Chris Hipkins made the announcement as the three leaders prepare to hold 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 personally favour severing ties with the monarchy.
“The entry into force of our new trade deal marks a new chapter in the great friendship between our two countries,” Sunak said in a statement on Thursday.
“This deal will unlock new opportunities for businesses and investors across New Zealand and the UK, drive growth, boost jobs, and most importantly build a more prosperous future for the next generation.”
Hipkins said the “gold-standard” trade agreement reflected the close relations between the UK and his country.
“This is a gold-standard FTA, reflecting the close relationship between our two countries. The market access outcomes are among the very best New Zealand has secured in any trade deal,” Hipkins said.
Under the deals, more than 99 percent of all Australian and New Zealand exports to the UK will be exempt from duties.
New Zealand officials have estimated the agreement will increase the size of the country’s economy by up to 1 billion New Zealand dollars ($629m), mainly by boosting sales of agricultural products such as wine, beef and butter.
UK officials have estimated its deal will increase the size of the country’s gross domestic product (GDP) by 800 million pounds ($1bn).
The deals also expand the countries’ respective working holiday schemes, making it easier for young jobseekers to take up employment.
The UK has been keen to find new markets for its exports since exiting the European Union, the world’s largest single market area, in 2020, following a closely-fought referendum.
