Select committee: International Agreements Committee
9th Report - Scrutiny of international agreements: UK-New Zealand free trade agreement
Published 4 November 2022
International Agreements Committee UK-New Zealand trade negotiations Report on parliament.uk ↗
At a glance5 recommendations and 16 conclusions · Government response published 13 January 2023
The government's response
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".
What the committee recommended 21
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Sources
- 9th Report - Scrutiny of international agreements: UK-New Zealand free trade agreement ↗The committee's report, parliament.uk
- Government Response to Scrutiny of international agreements: UK-New Zealand free trade agreement ↗The government's response, 13 January 2023, parliament.uk
Recommendations and conclusions 21
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1
The economic benefits of the UK-New Zealand FTA are likely to be positive if limited. Conclusion (the committee's words)The economic benefits of the UK-New Zealand FTA are likely to be positive if limited.
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2
We welcome the provisions facilitating services trade and investment, including those in relation to legal... Conclusion (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.
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3
The Government should continue to hold discussions with New Zealand counterparts to support UK regulators... Recommendation (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.
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4
It remains to be seen how UK agriculture will be impacted by the agreement with... Conclusion (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.
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5
It appears that the Government prioritised tariff liberalisation over retaining some protections. Conclusion (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.
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6
We note that the recently agreed EU-New Zealand FTA provides a similar level of market... Conclusion (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.
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7
Geographical Indications are important to regions of the UK which feel their agricultural interests have... Recommendation (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.
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8
Although New Zealand represents a small market for UK automotive manufacturers, the generous Rules of... Conclusion (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.
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9
We welcome the commitments on climate and environmental protection. Conclusion (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.
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10
We welcome New Zealand’s extension of copyright from 50 to 70 years, as well as... Conclusion (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.
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11
We welcome the inclusion of a procurement chapter that extends commitments above those provided for... Conclusion (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.
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12
We also welcome the dedicated chapters on SMEs and consumer protection. Conclusion (the committee's words)We also welcome the dedicated chapters on SMEs and consumer protection.
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13
Once the agreement has been implemented, we call on the Government to monitor the levels... Recommendation (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.
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14
We welcome the improved engagement with the devolved administrations. Conclusion (the committee's words)We welcome the improved engagement with the devolved administrations.
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15
The extent to which draft text is shared with them when it relates to a... Conclusion (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.
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16
We call on the Government to build on recent improvements and ensure that consultation with... Recommendation (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.
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17
We welcome that the Government has conducted a modelling review to provide a more detailed... Conclusion (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.
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18
We welcome the constructive engagement we have had with DIT officials and Ministers throughout the... Conclusion (the committee's words)We welcome the constructive engagement we have had with DIT officials and Ministers throughout the negotiations.
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19
As with the Australia FTA, however, we were only able to scrutinise this agreement after... Conclusion (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.
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20
It is important that consultation and dialogue with our Committee starts before a mandate is... Conclusion (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.
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21
We reiterate our recommendation that the Government should publish a trade policy, showing how it... Recommendation (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.