Apples and Pears chief executive Alan Pollard said the removal of tariffs on apple and pear exports to the UK will even out the playing field. Photo / John Cowpland
Apples and Pears chief executive Alan Pollard said the removal of tariffs on apple and pear exports to the UK will even out the playing field. Photo / John Cowpland
Hawke's Bay growers are celebrating a tariff-free trade deal that evens the playing field for cheaper apple and pear exports.
The new free trade deal was agreed to in principle between the UK and Aotearoa in October.
The deal will eventually end all tariffs on New Zealand exports to the country and is worth an estimated $1 billion over a period of 15 years to the New Zealand economy.
In a return gesture, Aotearoa will also eliminate tariffs on goods originating in the UK from day one of the agreement.
Apples and Pears chief executive Alan Pollard said the deal was good news for the Hawke's Bay growing community.
"From day one pears will have all tariffs removed and the apple tariff will be reduced over a three-year period so that in the fourth year, apples will be tariff-free.
"Free-trade is a good thing, as by removing tariffs, we're opening the trade environment. Tariffs represent trade barriers and we want the ability to trade more freely and with transparency," Pollard said.
UK Prime Minister Boris Johnson said the trade deal as "the cherry on the top of a long and lasting partnership between the United Kingdom and New Zealand." Photo NZME
While Pollard said that apple and pear tariffs were not as high as those on lamb and beef, the removal of tariffs on the former will make a difference for New Zealand exporters.
"This evens out the playing field for exporters of apples and pears, especially when up against Southern Hemisphere competitors like Chile, who have had more beneficial deals with the UK in the past," Pollard said.
This is the second free trade deal that the United Kingdom has agreed to since Brexit, with a similar agreement reached with Australia.
As part of the New Zealand – UK deal, animal welfare, climate change, and indigenous perspectives are all addressed.
Countries are currently working towards a final agreement, which Prime Minister Jacinda Ardern said would take place over the next few months, with the deal coming into effect "by next year".
"It's one of our best deals ever and secured at a crucial time in our Covid recovery...this is a huge deal for New Zealand," she said.
In a statement, UK Prime Minister Boris Johnson described the new trade deal as "the cherry on the top of a long and lasting partnership between the United Kingdom and New Zealand".
