Todd McClay Embarks on Trade Mission in UK and Korea as NZ-UK FTA Marks Success

Trade and Investment, and Agriculture Minister Todd McClay departs for the United Kingdom today as part of a high-level diplomatic mission to bolster New Zealand’s international trade relationships and celebrate a major milestone in bilateral trade. His visit marks the second anniversary of the entry into force of the New Zealand–United Kingdom Free Trade Agreement (NZ-UK FTA) and comes amid strong trade growth between the two nations.

Minister McClay will participate in the inaugural in-person New Zealand–United Kingdom Ministerial Trade Committee, where he will meet with UK officials including the Rt Hon Jonathan Reynolds, Secretary of State for Business and Trade; the Rt Hon Steve Reed OBE, Secretary of State for Environment, Food and Rural Affairs; and Carolyn Harris, the UK’s Trade Envoy to New Zealand.

In highlighting the Government’s strategy to boost economic growth and generate better-paying jobs, Minister McClay emphasized the value of open market access. “Better access to overseas markets is an important part of the Government’s economic plan to grow the economy and create better paying jobs,” he stated.

NZ-UK FTA Generates Significant Export Growth

Since the NZ-UK FTA came into effect in 2023, New Zealand exporters have reaped significant benefits. The agreement has driven a 21% increase in total exports, equivalent to an additional $644.4 million in trade gains.

“The results speak for themselves,” McClay said. “Goods exports to the UK have risen by 20%, and services exports are up over 22% in just two years.”

Key sectors driving this growth include:

• Meat exports: up 46%, reaching nearly $500 million

• Dairy exports: skyrocketed by 139%, now worth $198 million

• Fruit and nuts: up 52%, generating $54 million

• Travel services: increased by 22%, totaling nearly $1 billion

• Technology-related services: jumped by 50%, valued at $221 million

The primary sector, long a cornerstone of New Zealand’s economy, continues to lead this surge, especially in food and fibre products. These gains underscore the importance of reducing trade barriers and diversifying global market access.

Strengthening Ties with UK Stakeholders

While in the UK, Minister McClay’s agenda includes a series of engagements with key British stakeholders. These include strategic discussions with major retail player Waitrose, consultations with the National Farmers Union, and site visits to local agricultural enterprises. McClay will also meet with New Zealand companies operating in London, offering a platform to better understand the challenges and opportunities faced by Kiwi exporters in the UK.

The United Kingdom is currently New Zealand’s 7th largest trading partner, with two-way trade valued at $7.27 billion. In 2024 alone, New Zealand exported $3.69 billion in goods and services to the UK — a figure reflecting the momentum generated by the FTA.

Next Stop: Korea for APEC Summit

Following his UK visit, Minister McClay will travel to South Korea on Tuesday to attend the Asia-Pacific Economic Cooperation (APEC) Trade Ministers’ Meeting. There, he will hold bilateral discussions with a range of APEC and CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) trading partners.

This leg of the journey will further New Zealand’s trade objectives in the Asia-Pacific region and explore pathways for deeper regional cooperation. These interactions are seen as essential in advancing New Zealand’s commitment to fair, rules-based trade, and enhancing the resilience of supply chains amid global economic uncertainties.

Driving Trade Diplomacy Forward

Minister McClay’s trade-focused tour of the UK and Korea reinforces New Zealand’s proactive approach to international commerce and diplomacy. As global markets evolve and geopolitical dynamics shift, New Zealand’s efforts to secure favorable trade agreements and sustain robust trading partnerships remain central to its long-term economic resilience.

The success of the NZ-UK FTA illustrates the tangible benefits of free trade for Kiwi exporters, and Minister McClay’s mission aims to build on this progress while opening doors to new opportunities for New Zealand businesses on the world stage.