UK and New Zealand trade reaches record £4bn under FTA

UK and New Zealand goods and services trade reached a record £4bn in 2025, as businesses continued to make strong use of preferential tariffs under the two countries’ free trade agreement.

A joint statement from the UK and New Zealand governments said around 91.5% of eligible goods trade used available preferences in 2025. The agreement came into force in May 2023 and has now completed three years of operation.

The statement said £675.1m of traded goods successfully used preferential tariffs during the year. UK imports from New Zealand made especially strong use of the agreement, with 92.4% of eligible imports using preferences. New Zealand imports from the UK recorded preference utilisation of 88.5%.

The governments said use of preferential tariffs reduced costs, improved market competitiveness and supported trade growth. Without those preferences, UK imports from New Zealand could have faced an estimated £98.4m in additional duties, while New Zealand imports from the UK could have faced £7.9m.

The two governments also pointed to progress on digital trade and a new bilateral double tax agreement designed to improve certainty for cross-border trade and investment.

For banks and trade finance providers, high preference utilisation is important because tariff savings can improve margins, support importer cashflow and make cross-border contracts more predictable.

The agreement also shows how trade policy can shape financing demand. Lower duty costs and clearer digital trade rules can support more resilient trade flows, particularly for SMEs looking to expand into distant markets.