Tuesday, 20 June 2017 13:52

Brexit bumps

Written by 
Stephen Jacobi. Stephen Jacobi.

The outcome of the British election is not likely to have any major impact on New Zealand’s negotiations for a free trade agreement, says trade expert Stephen Jacobi.

The bigger issue for NZ is how soon the UK can get out of the EU, says Jacobi, a former diplomat, a policy adviser and executive director of the NZ International Business Forum and the NZ China Council.

“Until they have achieved that they are not really in a position for negotiating with NZ. Certainly a lot of preparatory work can be done but no formal negotiations can start.”

A big question mark also hangs over what British policies will be like after they leave the EU.

“They have a certain set of policies in relation to economic matters as a result of their membership of the EU. But how are they going to change those in the future?

“Until all those things are sorted out it is hard to see how we will be able to negotiate an FTA with them.

“So I don’t think the election result has a bearing on that other than it makes it a little more difficult to negotiate a quick exit from the EU.”

That exit will not be easy to negotiate.

“A weakened mandate for the government does not help but they still will be the government provided they get the support from the Northern Ireland party and they can continue to pass things through parliament. If they have a workable majority it shouldn’t make much difference.”

In any event leaving the EU is extremely complicated.

“I find that difficult to believe. I think our negotiation of an FTA with Britain is a long time in the future.”


More like this

Doing well for a small outfit

Prime Minister Bill English recently spoke at the NZ Institute of International Affairs annual dinner and touched on trade. Here are excerpts from his speech.

UK support for EU-NZ trade deal

Britain is probably New Zealand’s greatest supporter of it getting a free trade agreement (FTA) with the European Union (EU).

China FTA talks set to resume

Tariff elimination on dairy into China is one issue New Zealand will be looking to progress in the Free Trade Agreement update with China, with negotiations starting in less than two weeks.

More ag focus needed

The Government needs to ensure we get more agricultural trade with the European Union in any potential free trade agreement – but don’t expect completely free trade, says expert Stephen Jacobi.

Lamb turns the corner

Markets for New Zealand lamb have performed strongly for the last six months, says Affco general manager Andy Leonard.


» Latest Print Issues Online

The Hound

Nasty lot

Your old mate reckons multinational, tax-dodging political activist lobby group Greenpeace is proving just how nasty it can get when…

Not a puff

Winston Peters, has proven again to be all hat and no trousers.


» Connect with Rural News



South Island wool sale eases

South Island wool sale eases

The 4700 bales on offer saw a 74% clearance with mixed results, however all prices paid locally are still above…

Wool continues to ease

Wool continues to ease

The 7250 bales of North Island wool on offer saw a 72% clearance with most types easing further.