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UK-New Zealand Free Trade Agreement: inclusive trade explainer (web version)

Published 28 February 2022

The UK is proud of our strong workers’ rights and labour protections. The agreement we have signed with New Zealand upholds and promotes these already high standards, ensuring that more trade does not come at the cost of these principles.

The trade deal includes a dedicated chapter on trade and gender equality and also strengthens the trade relationships between UK, New Zealand and Māori enterprises.

Trade and gender equality

We have secured an innovative chapter on gender equality that will support women as business owners, entrepreneurs and workers to fully access and benefit from the opportunities created by this Agreement. Both countries have agreed to cooperate in areas such as promoting financial inclusion, fostering women’s entrepreneurship, and supporting economic opportunities for diverse groups of women in trade and investment.

It is important that we address the systemic barriers that may prevent women from participating equitably in trade and use this agreement to drive progress over time. The UK and New Zealand have committed to improving our analysis and monitoring of access to trade for women.

Trade and development

The deal will reinforce the UK and New Zealand’s commitment to promoting sustainable and inclusive economic growth, through trade. These provisions enable overall support of mutual trade and development objectives. They include the expansion of business and industry, greater empowerment for small and medium-sized enterprises and women-led businesses, the creation of jobs, and the alleviation of poverty.

Both countries will commit to working together to support developing countries’ access the benefits of the agreement and participate more equitably in global supply chains. This in turn can create opportunities for UK firms and consumers, for example, by reinforcing global supply chains.

We also recognise the value of undertaking and increasing cooperation related to trade and development, including through the sharing of best practice on policy and programming and joint advocacy in multilateral fora.

Labour protections

The UK and New Zealand have agreed to a standalone chapter on trade and labour, demonstrating our shared commitment to maintain high labour standards and protect workers’ rights.

The chapter ensures strong domestic protection for workers through commitments to international labour standards, and to not derogate from those standards to encourage trade and investment. It also contains measures for the effective enforcement of labour laws, whilst protecting the UK’s right to regulate.

The chapter also addresses other areas of trade and labour, such as promoting gender equality in the workplace, tackling modern slavery in supply chains, and encouraging good business practice and corporate social responsibility. It includes mechanisms for domestic stakeholders, such as trade unions and businesses, to share their views on implementation. The dispute settlement mechanism in this Agreement may be used should either nation fail to meet their obligations.

Māori trade and economic co-operation

This trade deal will help facilitate links between the UK, New Zealand and Māori-owned companies and develop opportunities to share expertise and interests, ensuring that all companies can benefit from the trade deal. Strengthening these ties can benefit UK enterprises; for example, by developing links between UK and Māori owned enterprises and facilitating access to supply chains. Stimulating increased competition could also lead to increased choice for British consumers for a variety of different products in the future.

The trade deal also recognises the importance and value of the Māori to New Zealand’s economy and society as well as the unique relationship between the UK, New Zealand and Māori. The UK has also agreed with New Zealand to endeavour to advance recognition and protection of the Haka Ka Mate. This will not lead to any protection through intellectual property rules or changes to those rules.