The New Zealand-United Kingdom Free Trade Agreement (NZ-UK FTA) has officially come into effect as of May 31, 2023. This landmark agreement is expected to bring significant benefits to businesses in both countries. In this blog post, we will delve into the key aspects of the NZ-UK FTA and how it facilitates the temporary entry of UK business persons into New Zealand.
Temporary Entry of UK Business Persons
Here is what you need to know.
Overview
As part of the NZ-UK FTA, New Zealand has committed to facilitating the temporary entry of certain categories of business persons from the UK. This includes business visitors, intra-corporate transferees (executives and managers), contractual service suppliers, and independent professionals.
Business Visitors
UK citizens traveling to New Zealand for business purposes, such as attending meetings, conferences, training seminars, or engaging in commercial transactions, can travel to New Zealand without applying for a visa. They will be granted a visitor visa on entry as the UK is a visa waiver country. However, they must request an NZeTA (New Zealand Electronic Travel Authority) at least 72 hours before they travel.
Intra-Corporate Transferees, Contractual Service Suppliers, and Independent Professionals
Individuals in these categories can apply for a Specific Purpose Work Visa. This visa allows them to work in New Zealand for a specific purpose or event.
Economic Benefits
Here is what it means.
Immediate Savings for New Zealand Businesses
New Zealand businesses are expected to save around $37 million immediately with the elimination of tariffs and new duty-free quotas covering 99.5% of current exports. The wine industry, which is New Zealand’s biggest export to the UK, will see at least $25 million in tariffs disappear overnight. Honey producers will no longer face a 16% duty, and the dairy and red meat sectors will transition to duty and quota-free access for the first time in 50 years.
Boost to GDP
The NZ-UK FTA is expected to bring an up to $1 billion increase to New Zealand’s annual GDP. This is a significant boost to the economy and is expected to create more jobs and opportunities for New Zealanders.
Inclusive and Sustainable Trade
The NZ-UK FTA is the first FTA launched and concluded under New Zealand’s Trade for All agenda. This agreement sets high ambition commitments in inclusive and sustainable trade with outcomes on the environment, gender, and a dedicated chapter on Māori Trade and Economic Cooperation.
Conclusion
The NZ-UK FTA is a monumental step in strengthening the economic ties between New Zealand and the United Kingdom. With the facilitation of temporary entry for UK business persons and the significant economic benefits, this agreement is set to unlock new opportunities for businesses and individuals in both countries.