Negotiations for a free trade agreement (FTA) with the UK have been formally launched today.
Trade Minister David Parker said a FTA with Britain would open up "more opportunities for small and medium sized businesses, Māori exporters, and our regional communities".
"In the post-Brexit environment, it makes more sense than ever for us to be working together to grow this partnership for the future."
It was hoped a FTA would make it easier to do business in the UK and to reduce cost for existing trade. The UK has also kicked off negotiations with Australia for a FTA.
The UK Government estimated a FTA would increase New Zealand's GDP by £500 million (NZ$975 million) and increase exports to the UK by 40 per cent.
UK exports to New Zealand are estimated to increase by seven per cent.
New Zealand's main exports to the UK are meat, wine, fruit, some machinery, eggs, honey and wool.
UK trade secretary Liz Truss visited New Zealand last September and said a FTA was a "very important priority".
Today, Ms Truss said "pivoting towards the Asia-Pacific will diversify our trade, increase the resilience of our supply chains and ensure the UK is less vulnerable to political and economic shocks in certain parts of the world".
The UK is New Zealand's sixth largest trading partner, with two way trade totalling $6 billion in 2019.
Mr Parker said New Zealand was hoping to remove all trade tariffs, address non-tariff barriers, fostering digital trade and creating trade provisions to support sustainable development.
The first round of negotiations will take place mid-July.
A FTA has been on the cards since March 2017.
Prime Minister Jacinda Ardern kicked off talks with Britain two years ago while it was in the midst of leaving the EU.
Just under a year later in January 2019, Ms Ardern once again publicly cemented New Zealand's desire for a free trade agreement with Britain .
Then in August 2019, Ms Ardern spoke to the new British PM Boris Johnson to congratulate him on his appointment and to discuss their commitment to a free trade agreement .
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