Conclusion 1
Concluded (the committee's words)The economic benefits of the UK-New Zealand FTA are likely to be positive if limited.
Select committee: International Agreements Committee
UK-New Zealand trade negotiations
Closed
Opened 16 Jul 2020
Closed 10 Nov 2023
5 recommendations
16 conclusions
International Agreements Committee Inquiry on parliament.uk ↗
Inquiry scope (the committee's words)
The Government has made agreeing a comprehensive free trade agreement (“FTA”) with New Zealand an early priority. The Government began its first round of trade negotiations with New Zealand on 13 July 2020. A trade deal with New Zealand would be one of the first major trade agreements pursued by a post-Brexit UK. This inquiry will focus on the Government’s aims and objectives, the progress of negotiations, and the possible impacts of a final deal for people and businesses across the UK. It is not yet known when the talks will conclude, but this inquiry will run for the duration of those talks.
Where it stands
The inquiry is closed, opened 16 July 2020.
The committee has published 1 report, most recently 9th Report - Scrutiny of international agreements: UK-New Zealand free trade agreement on 4 November 2022.
The government's response
Published 13 January 2023.
Summary written by Accountability Index from the government's response. It is not the government's own words.The government welcomes the Committee's support for ratifying the UK-New Zealand FTA, responds on the report's recommendations, and says it does not plan to publish a further trade policy document.
- On monitoring tariff rate quotas and preference usage, the government says DIT "has committed to publish a biennial FTA monitoring report" on implementation, emerging impacts and whether utilisation can be enhanced.
- On Geographical Indications, it notes New Zealand has no agri-food GI scheme currently; should New Zealand introduce one, the UK "will be able to amend" the agreement, and it will keep the Committee and stakeholders updated if any changes are made.
- On engagement with the devolved administrations, it says it is "in the process of delivering on the expanded approach to information sharing" and intends to work with them to support more detailed contributions.
- On a published trade policy, it says it has a trade strategy and that "we do not plan to publish any further material".
Recommendations and conclusions
- Conclusion 1Conclusion
- Conclusion 2Conclusion
- Recommendation 3Recommendation
Reports
- 9th Report - Scrutiny of international agreements: UK-New Zealand free trade agreement4 November 2022 · 21 items
Evidence
- 4 oral evidence sessionsLatest 17 March 2022
- 13 witnesses
Recent activity
- Government Response to Scrutiny of international agreements: UK-New Zealand free trade agreement13 January 2023, Report published
- 9th Report - Scrutiny of international agreements: UK-New Zealand free trade agreement4 November 2022, Report published
- Committee event24 March 2022, Formal meeting (private meeting) · Room 3-20, Millbank House
Recommendations and conclusions 21 shown
Conclusion 2
Concluded (the committee's words)We welcome the provisions facilitating services trade and investment, including those in relation to legal services, financial services and digital trade.
Recommendation 3
Recommended (the committee's words)The Government should continue to hold discussions with New Zealand counterparts to support UK regulators in securing mutual recognition of professional qualifications.
Conclusion 4
Concluded (the committee's words)It remains to be seen how UK agriculture will be impacted by the agreement with New Zealand and whether the safeguards will protect the interests of the UK agricultural sector, and that of the devolved nations in particular.
Conclusion 5
Concluded (the committee's words)It appears that the Government prioritised tariff liberalisation over retaining some protections. The usage of tariff rate quotas, which are designed to phase in tariff-free access over time, should be monitored and reported on regularly by the Department for International Trade.
Conclusion 6
Concluded (the committee's words)We note that the recently agreed EU-New Zealand FTA provides a similar level of market access to New Zealand, but maintains greater protections for EU agricultural producers, as well as protections for all EU Geographical Indications.
Recommendation 7
Recommended (the committee's words)Geographical Indications are important to regions of the UK which feel their agricultural interests have been undermined by the removal of tariffs. It is disappointing that the UK Government has been unable to achieve this negotiating aim. We call on the Government to begin the process of consultation to review the GI provisions as soon as possible and amend the agreement to recognise UK GIs. It should keep us and relevant stakeholders informed of progress.
Conclusion 8
Concluded (the committee's words)Although New Zealand represents a small market for UK automotive manufacturers, the generous Rules of Origin in the agreement are likely to be beneficial.
Conclusion 9
Concluded (the committee's words)We welcome the commitments on climate and environmental protection. In particular, we welcome that the provisions in the environment chapter are subject to dispute resolution, which means they will be enforceable.
Conclusion 10
Concluded (the committee's words)We welcome New Zealand’s extension of copyright from 50 to 70 years, as well as the introduction of greater IP protections for artists and performers.
Conclusion 11
Concluded (the committee's words)We welcome the inclusion of a procurement chapter that extends commitments above those provided for under the WTO Government Procurement Agreement.
Conclusion 12
Concluded (the committee's words)We also welcome the dedicated chapters on SMEs and consumer protection.
Recommendation 13
Recommended (the committee's words)Once the agreement has been implemented, we call on the Government to monitor the levels of preference usage and provide export (and other) support for businesses, including SMEs, as required.
Conclusion 14
Concluded (the committee's words)We welcome the improved engagement with the devolved administrations.
Conclusion 15
Concluded (the committee's words)The extent to which draft text is shared with them when it relates to a reserved competence, however, continues to be limited. While welcome, it remains to be seen whether the Government’s recent offer to increase the scope of information-sharing will address the concerns of the devolved administrations in this regard.
Recommendation 16
Recommended (the committee's words)We call on the Government to build on recent improvements and ensure that consultation with the devolved administrations and legislatures is transparent, detailed and timely, and that their views are represented throughout the negotiations, including on reserved matters that may have an impact on them.
Conclusion 17
Concluded (the committee's words)We welcome that the Government has conducted a modelling review to provide a more detailed sub-national assessment of the impact of FTAs. We look forward to receiving assessments with more detailed information on the impact of FTAs on the nations and regions of the UK.
Conclusion 18
Concluded (the committee's words)We welcome the constructive engagement we have had with DIT officials and Ministers throughout the negotiations.
Conclusion 19
Concluded (the committee's words)As with the Australia FTA, however, we were only able to scrutinise this agreement after all decisions had already been taken. The Government commitment to facilitate a debate on the Negotiating Objectives was unfortunately made too late to affect the scrutiny of this particular agreement.
Conclusion 20
Concluded (the committee's words)It is important that consultation and dialogue with our Committee starts before a mandate is established, so the final mandate can be informed by Parliament. We therefore welcome the recent offer of greater Committee involvement during the mandate-setting stage and look forward to discussing the practical details with the new Trade Secretary and her officials.
Recommendation 21
Recommended (the committee's words)We reiterate our recommendation that the Government should publish a trade policy, showing how it links into broader foreign policy, security, defence and other domestic objectives, as well as labour, women’s and human rights, and the environment. This will enable trade policy to be understood in relation to other priorities and enable us to assess the impacts and trade-offs.
Reports
9th Report - Scrutiny of international agreements: UK-New Zealand free trade agreement
- HC No.
- Not recorded
- Published
- 4 Nov 2022
- Items
- 21
- Government response
- Government response published 13 January 2023. Read the government's response ↗
Oral evidence sessions
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| Date | Session and witnesses | Source |
|---|---|---|
| 17 Mar 2022 |
Oral evidence session
Prof Michael Gasiorek,
Sam Lowe · Flint Global
|
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| 24 Nov 2021 |
Oral evidence session
Professor Emily Jones · Blavatnik School of Government,
Professor Michael Gasiorek
|
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| 17 Nov 2021 |
Oral evidence session
Beatrice Morrice · National Farmers' Union of Scotland (NFU Scotland),
Dr Nick Fenwick · Farmers Union of Wales,
Huw Rhys Thomas · NFU Cymru,
James Lowe · Northern Ireland Agriculture Producers Association,
Victor Chestnutt · Ulster Farmers' Union
|
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| 18 Nov 2020 |
Oral evidence session
Bede Corry · New Zealand High Commission,
Chris Kebbell · New Zealand High Commission,
David Evans · New Zealand High Commission,
Deighton Conder · New Zealand High Commission
|
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Who gave evidence
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| Witness | Organisation | Sessions |
|---|---|---|
| Beatrice Morrice · Political Affairs Manager | National Farmers' Union of Scotland (NFU Scotland) | 1 |
| Bede Corry · High Commissioner of New Zealand to the United Kingdom | New Zealand High Commission | 1 |
| Chris Kebbell · Counsellor (Primary Industries) | New Zealand High Commission | 1 |
| David Evans · Deputy High Commissioner of New Zealand to the United Kingdom | New Zealand High Commission | 1 |
| Deighton Conder · First Secretary (Trade and Economics) | New Zealand High Commission | 1 |
| Dr Nick Fenwick · Head of Policy | Farmers Union of Wales | 1 |
| Huw Rhys Thomas · Political Adviser | NFU Cymru | 1 |
| James Lowe · Chairman | Northern Ireland Agriculture Producers Association | 1 |
| Prof Michael Gasiorek | Not recorded | 1 |
| Professor Emily Jones · Associate Professor in Public Policy | Blavatnik School of Government | 1 |
| Professor Michael Gasiorek | Not recorded | 1 |
| Sam Lowe · Partner | Flint Global | 1 |
| Victor Chestnutt · President | Ulster Farmers' Union | 1 |
Correspondence
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Meetings & visits
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| Date | Type | Detail | Source |
|---|---|---|---|
| 24 Mar 2022 | Formal meeting (private meeting) | Not recorded · Room 3-20, Millbank House |