Free Trade Agreement between the United kingdom and New Zealand
(Goods and Services)

Questions and Replies

The following communication, dated 7 October 2024, is being circulated at the request of the delegations of the United Kingdom and New Zealand.

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Question from Canada

Development Cooperation

1.1.  Page 21: On Page 1111 of the FTA, Article 9.13 on Development Cooperation states:

         "Recognising the role that trade in services can play in economic development and poverty reduction, the Parties may engage in cooperative activities to support the participation of developing countries in trade in services."

        Canada notes the inclusion of a specific article on Development Cooperation in the Cross-Border Trade in Services chapter. Could the Parties provide more information on the cooperation activities taken to date, if any, and whether any outcomes of such activities could be shared?

Joint response from the Parties

        Although no development cooperation has taken place as of yet in the context of the Cross-Border Trade in Services chapter, the UK and New Zealand will continue to review how both parties can collaborate through structures under the FTA such as the implementation of Article 9.13 at the Services and Investment sub-committee and Inclusive Trade sub-committee.

        Trade and Development was also discussed at the first meeting of the UK-New Zealand – Inclusive Trade Sub-Committee in April 2024. The UK and New Zealand shared their priorities for Development and acknowledged the important role that trade plays in developing countries' economic growth and resilience.

Question from Colombia

Sector-specific provisions on trade in goods

Animal welfare

1.2.  Paragraph 3.71. of the factual presentation of the Free Trade Agreement between the United Kingdom and New Zealand reads as follows:

        3.71. The Parties recognize that animals are sentient beings (as defined in each Party's respective animal welfare laws and regulations) and the protection and improvement of animal welfare may, in accordance with their WTO commitments, be an interest in the context of a Party's trade objectives (Article 6.2).

        In this regard, we would like to know how the Parties plan to determine the level of protection without affecting trade or becoming a non-tariff barrier. Additionally, are there other sectors that would consider including this protection?

Joint response from the Parties

        The objective of the Animal Welfare Chapter of the New Zealand – United Kingdom Free Trade Agreement is to enhance cooperation between the Parties on animal welfare of farmed animals (Art 6.1).

        New Zealand and the United Kingdom recognise that their farming practices are substantially different but that each Party affords a high priority to animal welfare in its farming practices and in multiple areas the Parties' respective animal welfare laws, regulations, and policies provide comparable outcomes (Art 6.3.5).

        The Chapter also affirms the right of each Party to set its policies and priorities for the protection of animal welfare and to adopt or modify its laws, regulations, and policies in a manner consistent with each Party's international commitments. (Art 6.3.1). New Zealand and the United Kingdom intend to implement this language accordingly.

        The United Kingdom and New Zealand look to the established international fora, such as World Organisation of Animal Health (WOAH) to enhance global animal welfare through the development of scientifically based animal welfare standards. The United Kingdom and New Zealand's production animal welfare rules are based on WOAH standards and guidelines. In recognition of the differences in farming practices around the world, New Zealand and the United Kingdom's respective trade and animal welfare provisions are applied with full regard to our respective WTO commitments so as not to create unnecessary trade barriers.

Question from Japan

Provisions on Trade in Goods

Rules of origin

1.3.  Paragraphs 5 and 6 of Article 3.8 of the Free Trade Agreement between the United Kingdom and New Zealand provide that the Rules of Origin and Customs and Trade Facilitation Working Group may determine the list of eligible developing countries whose materials may be cumulated as originating materials under the Agreement.

        Which developing countries the Parties envisage as "eligible developing countries"? Is there any criteria for the selection of "eligible developing countries and territories"? How can the Parties make sure the "originating" status of the materials from "eligible developing countries and territories"? How can the customs authority of the importing Party verify the originating status of the materials from eligible developing countries and territories? Is there any arrangement, such as customs cooperation, between the customs authority of the importing Party and the authorities of "eligible developing countries and territories"?

Joint response from the Parties

        The Rules of Origin and Customs and Trade Facilitation Working Group is still in the early stages of discussing how best to implement paragraphs 5 and 6 of Article 3.8 of the New Zealand – United Kingdom Free Trade Agreement. Further detail on implementing Article 3.8, including the points highlighted by the Member, will be developed by the Working Group over the coming years.

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