UK – New Zealand trade deal: How does this compare to the EU's deal?

27 July 2023

A photo of the UK and New Zealand flags on flagpoles

Following the announcement of a free trade agreement between the European Union and New Zealand due to enter force in 2024, we take a look at how this compares to the trade deal signed by the UK government last year, and how this fares from the perspective of different farming sectors.

When did the UK-NZ and EU-NZ trade deals come into force?

The FTA (free trade agreement) between the UK and New Zealand was signed in February 2022. The deal entered into force on 31 May 2023.

The FTA between the European Union and New Zealand was signed in July 2023, and is expected to come into force in 2024.

What are the differences in market access for the UK and the EU?

In the EU-NZ FTA, some sectors enjoy enduring protection through permanent TRQs (tariff-rate quotas) while in the UK-NZ FTA the protection for sensitive sectors disappears after a number of years.

In addition, the size of the different EU TRQs in the EU-NZ agreement is much smaller than the UK ones.

For example, the volumes of the EU beef, butter and cheese TRQs represent less than 1% of the EU consumption of those commodities.

How UK-New Zealand deal will hit British farming sectors

In comparison, the volumes of the UK TRQs are much higher in relative and absolute terms and disappear over time.

For example, the UK lamb TRQ (combined with the WTO TRQ) represents more than 50% of the UK current production.

Full details of the UK TRQs and tariff schedule can be found at: GOV.UK | Tariff schedule for trade with New Zealand

Details on the EU TRQs and tariff schedule with New Zealand can be found at: CIRCABC | EU – New Zealand Free Trade Agreement

Market access – How does this differ?

Livestock – Beef and Sheep meat

Beef
UK / New Zealand Agreement	EU / New Zealand Agreement
Volumes are expressed as shipped product weight (which favours importation of high value boneless cuts) FTA volumes Year 1 quota = 12,000t rising to unlimited volumes from year 11 onwards in quota duty 0%. A safeguard quota of 20% can be applied in Years 11 to Year 15 if imports exceed trigger volumes (43,056t rising to 60,000t in Year 15). This safeguard measure will not apply from Year 16 onwards. Quota managed on a first come first served basis.	Volumes are expressed as CWE (which means a coefficient factor of 130% applied to product weight for boneless cuts) FTA volumes EIF = 3,333t rising to Year 7 and subsequent years 10,000t with in quota rate of 7.5%. Quota volumes is for product from animals that have been raised under New Zealand's pastoral farming conditions. For greater certainty, this does not include commercial feedlots. FTA volumes are on top of the current WTO 1300t product weight) of High Quality beef quota (with a current in quota tariff rate of 20%¹) with a reduced tariff of 7.5% Quota managed on the basis of an import licence.

Sheep meat
UK / New Zealand Agreement	EU / New Zealand Agreement
Volumes are expressed as CWE (which means a coefficient factor of up to 180% applied to product weight for boneless cuts) Year 1 quota (fresh and frozen) = 35,000t rising to unlimited volumes from Year 16 onwards. This TRQ can only be used once the utilization of the NZ WTO sheep meat TRQ of 114,000t has reached at least 90% in that year. Quota managed on a first come first served basis.	Volumes are expressed as CWE (which means a coefficient factor of up to 180% applied to product weight for boneless cuts. (Fresh/ chilled) Year 0 = 4,433t rising to 13,300t in Year 6 and subsequent years with in quota rate 0%. (Frozen) Year 0 = 8233t rising to 24,700t in Year 6 and subsequent years with in quota rate 0%. FTA volumes comes on top of the existing WTO TRQ (114,184t). Quota managed on a first-come first-served basis.

Dairy

Butter
UK / New Zealand Agreement	EU / New Zealand Agreement
Tariffs eliminated after 5 years. Year 1 quota of 7,000t rising to 15,000t in Year 5 and unlimited volumes from year 6 onwards, In quota duty 0% Quota managed on a first come first served basis.	New FTA TRQ 15 000t phased in over 7 years with a steadily reducing in quota duty until Year 7, whereafter in-quota tariff remains at 5%. In addition, 21 000t of the current WTO quota of 47 177t (with the in-quota tariff of 38%) will be reduced to 5% of the MFN duty. Quota managed on the basis of an import licence.

Cheese
UK / New Zealand Agreement	EU / New Zealand Agreement
Tariffs eliminated after 5 years. Year 1 quota of 24,000t rising to 48,000t in Year 5 and unlimited volumes from year 6 onwards, In quota duty 0%. Quota managed on a first come first served basis.	New FTA TRQ 25 000 tonnes with an in quota duty 0% phased in over 7 years. In addition, the in-quota duty for 6 031t allocated under the EU’s WTO schedule will go from €170,6 to 0 (cheese for processing and whole cheddar cheeses between 33kg-44kg in size) Quota managed on the basis of an import licence.

Milk powders (whey and SMP)

UK / New Zealand Agreement

EU / New Zealand Agreement

3 years of staged tariff reduction for some solid products – eg. SMP and whey. 0% duty from Year 4 onwards.
Liberalisation at entry into force for liquid products – eg. yogurt and liquid milk).

Milk Powder

An additional FTA TRQ of volumes rising from 5,000t at EIF to 15,000t from 6 years and beyond with an in-quota tariff of 20% of the MFN rate.
Quota managed on the basis of an import licence.

Dairy PAPs and High Protein Whey

A TRQ with volumes rising to 3,500t in Year 6 and beyond will be opened with a 0% in quota tariff
Quota managed on a first-come first served basis.

Fruits and Vegetables

Apples
UK / New Zealand Agreement	EU / New Zealand Agreement
Cider Apples in bulk, from 16 September to 18 December (B8) i.e. tariff reduced in equal steps and duty free from Year 8 Apples (other) (3 years of seasonal protection). FTA seasonal quota (1st August -31st December) Year 1 volume 12,000 rising to 20,000t in Year 3 at 0% duty and unlimited volumes thereafter.	Cider Apples in bulk, from 16 September to 15 December (B3) i.e. duty-free from Year 3 Apples (Other) duty free at Entry into Force (EIF), but Entry Price system applies

Pears
UK / New Zealand Agreement	EU / New Zealand Agreement
Fresh perry pears, (in bulk, from 1 August to 31 December), tariff removed in equal steps, 0% duty from Year 4. Pears (others) liberalised at EIF	Fresh Perry pears, in bulk, from 1 August to 31 December are liberalised at EIF Pears (others) tariff removed in equal steps, 0% duty from Year 3

Vegetables
UK / New Zealand Agreement	EU / New Zealand Agreement
Onionsets (fresh/chilled), shallots, potatoes, shelled/unshelled beans are fully liberalised from year 8	Onions, shallots, potatoes, shelled/unshelled beans are fully liberalised at EIF

Other fruits
UK / New Zealand Agreement	EU / New Zealand Agreement
Bilberries, cherries, dried apples, dried pears are fully liberalised from Year 4.	Bilberries, cherries, dried apples, dried pears are fully liberalised at EIF

Sweetcorn
UK / New Zealand Agreement	EU / New Zealand Agreement
Liberalised at Entry into force	TRQ at 0% duty for 800t at EIF

Crops

UK / New Zealand Agreement	EU / New Zealand Agreement
Wheat & meslin, barley, malts, roasted malts tariffs reduced in equal steps and fully liberalised from Year 8	Wheat & meslin, barley, malts, roasted malts are liberalised from Year 3

Sugar

UK / New Zealand Agreement	EU / New Zealand Agreement
HS 1701 codes duty free at EIF	HS 1701 codes are fully liberalised from Year 5

Ethanol

UK / New Zealand Agreement	EU / New Zealand Agreement
Duty free from Year 8	TRQ at 0% duty 4000t at EIF

SPS (Sanitary and Phytosanitary) measures

The UK and New Zealand rolled over the existing agreement on Sanitary Measures applicable to Trade in Live Animals and Animal Products between the EU and New Zealand.

As a consequence, the number of physical checks on products of animal origin at BCPs (Border Control Points) are substantially reduced and inspection fees for these products also mutually reduced.

Other provisions include the recognition of equivalence in legislation, standards, procedures and clauses permitting safeguarding mechanisms for either party to take in case of immediate risks to public and animal health.

The full rolled over agreement can be found at: GOV.UK | Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of New Zealand on Sanitary Measures Applicable to Trade in Live Animals and Animal Products

There is also recognition of equivalence based on international standards and of the concepts of Pest Free Areas, Pest Free Places of Production, and Pest Free Production Sites, as well as areas of low pest prevalence.

One thing that is missing from the EU-NZ SPS chapter is the provision that ensures that SPS measures are based on the relevant international standards, guidelines, or recommendations, or if its sanitary and phytosanitary measures are not based on international standards, guidelines, or recommendations, that they are based on a risk analysis carried out in accordance with relevant provisions, including Article 5 of the SPS Agreement.

This is likely to ensure that the application of the EU’s precautionary principle is not inconsistent with the FTA provisions.

The EU-NZ and UK-NZ SPS chapters also cover cooperation on AMR (antimicrobial resistance).

In particular, the UK and NZ shall explore initiatives to promote the reduction or prohibition of unnecessary use of antibiotics in the rearing of animals for food production. Moreover, the exchange of information, expertise, data on AMR surveillance, and experiences in the field of combatting of AMR is encouraged.

As a point of difference, the dispute settlement mechanism does apply to the SPS Chapter in the EU-NZ FTA while it does not cover the SPS chapter in the UK-NZ FTA.

On animal welfare, the aim in both FTAs is to enhance cooperation between the parties.

GI (Geographical Indications) products

UK-NZ FTA

In the UK-NZ FTA, there are only provisions to protect Scottish whisky and nothing about the rest of the UK GIs, despite this being of real importance to UK exporters.

The two countries will review the situation if New Zealand signs an international agreement which requires it to protect GIs, or if New Zealand adopts any substantive change to its current GIs regime (for example, the introduction of a scheme for the registration and protection of agri-food GIs).

If New Zealand does not introduce a scheme within two years after entering the FTA, both sides will review the provisions related to GIs. There is no legal requirement for an agreement on GIs to be made, only to revisit discussions on the matter.

EU-NZ FTA

In the EU-NZ FTA, there are provisions to ensure that New Zealand’s regime for the registration of wine and spirits GIs will be extended to include GIs for agricultural products, foodstuffs and other types of beverages.

Alongside this, New Zealand and the EU will each protect a list of the other’s GIs. This means that only EU producers will be able to use the protected EU GIs on relevant products imported and sold in New Zealand, just as New Zealand wine producers will be benefit from protected GIs for wines exported and sold in the EU.

Some of these protections will be phased in over between 5 and 9 years, but eventually producers in New Zealand will need to stop using terms such as ‘sherry’, ‘port’ and ‘feta’ on their products. New Zealand has agreed that existing users can continue to use ‘gruyere’ and ‘parmesan’ on products containing cheese.

More on New Zealand trade from NFUonline:

Australia and New Zealand trade deals come into force

NFU responds to finalised UK-New Zealand trade deal

How UK-New Zealand deal will hit British farming sectors

Ask us a question about this page

Once you have submitted your query someone from NFU CallFirst will contact you. If needed, your query will then be passed to the appropriate NFU policy team.

Name *

Membership number

Telephone number *

Email address *

Enquiry * You have 0 characters remaining.

By completing the form with your details on this page, you are agreeing to have this information sent to the NFU for the purposes of contacting you regarding your enquiry. Please take time to read the NFU’s Privacy Policy if you require further information.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.