UK-New Zealand trade negotiations - Which? submission

Summary:

1. Which? welcomes the opportunity to submit evidence to the International Agreements Committee on the UK-New Zealand free trade agreement (FTA). This is a comprehensive and ambitious trade deal which should bring benefits in terms of increased trade in goods and services as well as stronger cooperation in key areas such as consumer and environmental protection.
2. We particularly welcome that this is the first of the UK’s new FTA’s to include a standalone consumer protection chapter. This reinforces the important impacts that trade deals can have for consumers and sets out some key commitments in relation to consumer protection and opportunities for cooperation on cross-border trade, including supporting effective redress.
3. The agreement also liberalises tariffs on UK imports from New Zealand which the government’s impact assessment indicates will mean greater consumer choice of New Zealand products and products potentially at lower prices, such as kiwi fruit or wine. This, however, assumes that tariff reductions feed through into consumer prices against the current backdrop of wider supply chain considerations.
4. These tariff reductions, while accompanied with tariff rate quotas and safeguarding measures for sensitive products, such as agri-food products, will have implications for UK producers and their ability to compete, which may in turn have consequences for consumers who wish to support UK producers.
5. Our consumer research shows that food and product safety standards are a key priority for consumers. It is important that the market access provisions are accompanied by UKcore standards to ensure that agri-food product imports, such as meat and dairy products are not produced to lower environmental or welfare standards and therefore affect the UK’s ability to transition to a more sustainable food system.
6. The environmental chapter within the trade deal makes some ambitious and positive commitments, which need to be followed through, including for cooperation in key areas such as trade in environmental goods and services, supporting the transition to a circular economy and sustainable agriculture. This needs to deliver meaningful outcomes and must not be undermined by other provisions within the FTA. The Department for International Trade (DIT) impact assessment for example highlights how there will be some increase in transport-related emissions associated with increased trade with New Zealand, while overall greenhouse gas emissions associated with UK-based production are not expected to change.