Brexit will require work by trade negotiators

Brexit will require work by trade negotiators but larger trend unchanged

Source: BusinessNZ

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The new post-Brexit landscape will require more work by New Zealand trade negotiators, says ExportNZ.

Executive Director Catherine Beard says the vote for Britain to leave the EU will have an impact on New Zealand’s trade arrangements, if new trade deals will need to be struck between the EU and Britain.

"For example, New Zealand meat exports to the EU and UK are linked, and those deals may need to be unpicked and renegotiated. Unfortunately, this will create uncertainty.

"Our goods exports to Europe are already highly tariffed and New Zealand exporters are hopeful of changing this with a NZ-EU free trade agreement as soon as possible. Britain’s exit from the EU could slow this process down.

"Services exports to the UK will also be affected. British tourists make up a large proportion of all tourists to New Zealand. If Brexit results in to the pound dropping lower, higher interest rates and lower growth in the UK, we may expect to see fewer UK tourists coming here.

"However the Brexit vote must be seen in the context of the larger moves in exports over recent years - New Zealand is increasingly trading with Asia and Australia rather than the EU and Britain.

"Thirteen percent of our food exports go to Europe while 50 percent go to Asia.

"New Zealand’s larger export trend is from feeding the West to feeding the East, and this is likely to continue."

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