UK-NZ trade deal 'highly possible' by end of August

UK International Trade Secretary Liz Truss. Photo / Getty Images

Hopes are growing that a trade deal with New Zealand, the second ground-up accord of the post-Brexit era, can be secured within weeks.

An insider at the Department for International Trade said an announcement on New Zealand before the end of August is "highly possible" as discussions intensify.

A deal would come hot on the heels of Britain's outline agreement with Australia, which was unveiled in June.

The Government hopes to get the Australian partnership signed off by Boris Johnson and his counterpart Scott Morrison when the latter visits Britain in October for the Cop26 climate conference.

The source said trade secretary Liz Truss would be driving a hard bargain on key areas of interest.

They said: "New Zealand will need to give us more on services, mobility and investment if they want a deal.

"If we have to go beyond then into September to get the best deal, then so be it."

Any deal is likely to take a similar shape to the tie-up with Australia, which proposes a widespread liberalisation including the removals of tariff quotas on agricultural exports and has drawn criticism from British farmers.

It is expected to have a negligible effect on UK GDP, with modelling by the trade department even indicating that an extensive deal could mildly reduce Britain's national output.

Recent events have provided a potentially awkward backdrop for what may be the final weeks of talks.

Streaming giant Amazon last week announced that it would shift production of its highly-anticipated Lord of the Rings TV series from New Zealand to the UK, in a major blow to the country's creative and tourism industries.