New Zealand’s Prime Minister Jacinda Ardern announced on Thursday, the South Island Pacific nation has clinched a historic Free Trade Agreement (FTA) with the United Kingdom.

Key details (via Xinhua News Agency)

“The FTA will see a boost of almost 1 billion NZ dollars (720 million US dollars) to New Zealand GDP and unprecedented access for Kiwi exporters to the British market.”

“The FTA will also see an elimination of all tariffs by Britain on New Zealand exports, with over 97 percent being removed the day the FTA comes into force.”

“The deal will also see significant increases for beef and sheepmeat market access.”

Separately, New Zealand Trade Minister Damien O'Connor said, “pre-COVID estimates also projected that New Zealand goods to Britain will increase up to 40 percent and that New Zealand GDP will benefit up to 970 million NZ dollars (699 million US dollars) due to the FTA.”

Market reaction

NZD/USD is holding higher ground amid a better appetite for riskier assets and the NZ-UK trade deal.

The spot is currently trading at 0.7213, adding 0.18% on the day.