Wine is the country's biggest export to the UK. Photo / Warren Buckland
Wine is the country's biggest export to the UK. Photo / Warren Buckland
The Hawke's Bay wine industry is among the big winners of a free-trade agreement between New Zealand and the UK, which could come into effect by the end of this year.
The deal was signed on yesterday morning in London, and removes all tariffs on New Zealand exports into theUK.
"Our largest export to the UK is wine – approximately $500 million [per year]," Minister for Trade and Export Growth Damien O'Connor, who signed the agreement, said.
"Overnight $14 million of wine tariffs will evaporate.
"We are aiming for this historic agreement to enter into force by the end of 2022."
The UK is New Zealand's second-biggest export market for wine behind the US.
The honey and farming (dairy and red meat) sectors also have large exports into the UK, and could save tens of millions of dollars every year in taxes, according to the Government.
A Hawke's Bay Winegrowers spokeswoman said the announcement was "very positive" for the region's wine industry.
"The agreement will reduce trade barriers and remove tariffs on New Zealand wine exports to the UK, which will make a big difference for many of our wineries in Hawke's Bay."
Napier Port CEO Todd Dawson said the deal could lead to more ships travelling between UK and Napier, and other ports in New Zealand.
Napier Port CEO Todd Dawson. Photo / Warren Buckland
"The shipping laneways between NZ and the UK are well used by NZ exporters, despite the tariffs," he said.
"Over time it may result in an increase in shipping calls between the two destinations, but not immediately.
"The lifting of tariffs is good news but it is also important for business to be able to get back in front of global markets - reconnecting with their customers and reminding them we are an attractive country to do business with.
"So it is great to see border restrictions coming off New Zealanders' ability to travel and do business internationally."
When the deal was announced in principle last year, New Zealand Winegrowers said it would be a big boost to the sector.
"The agreement will reduce trade barriers and remove tariffs on New Zealand wine exports to the UK, which will make a big difference for many within our industry," said Winegrowers' Philip Gregan.
