Brexit negotiators yesterday worked well into the early hours in the morning to secure a deal that’ll spare the UK new tariffs and border disruptions at the start of the new year.
For Britons, it means the shock of the UK’s exit from the European Union’s trading rules in exactly a week’s time has been dampened, amid an already-struggling British economy in the face of the Covid-19 pandemic.
For Kiwis, their ability to live or work in the UK won’t be affected by the deal but those who trade in the UK or the EU could expect some changes.
Foreign Affairs Minister Nanaia Mahuta said she hoped trade details would be addressed promptly, stating she would be negotiating free-trade agreements with the UK and New Zealand in the future.
Former trade negotiator Charles Finny told RNZ this morning the deal was a relief for exporters in New Zealand. Had there been no deal, Finny said there would have been border chaos and a disruption in exports.
UK Prime Minister Boris Johnson said he was confident the deal, worth $NZ1.3 trillion a year, would "protect jobs around this country".
"We've taken back control of our laws and our destiny," Johnson said of the deal.
Exact details of the some 2000-page deal haven’t been released. But, in general, it would mean there would be no taxes on goods traded between the UK and the EU. There are also no limits on the amount of goods that can be traded.
But, trade still won’t be as smooth as it used to be for the UK.
Firms trading with the EU would now have to file forms and customs declarations. Different rules for product labelling and sanitary checks on agricultural products will also be introduced.
The additional red tape comes at an estimated cost of about NZ$14 billion a year.
UK voted to leave its biggest trading partner, the EU, in 2016. The UK continued following EU economic rules as part of a transition period. That transition period ends on December 31.
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