As New Zealand and the United States seek to strengthen their economic ties, negotiations for a free trade agreement between the two nations have been underway since 2018. This potential agreement has the potential to unlock new business opportunities and deepen the economic relationship between the two countries.

The negotiations were set in motion after a meeting between New Zealand Prime Minister Jacinda Ardern and US President Donald Trump in 2017. At the time, President Trump expressed interest in a free trade agreement with New Zealand, stating that it would be a “win-win” for both nations. Since then, both countries have been working to negotiate a deal that would benefit their respective economies.

A free trade agreement between New Zealand and the United States would provide opportunities for businesses to expand their operations and increase trade. The agreement has the potential to eliminate or reduce tariffs on goods and services, which could make it easier and more cost-effective for companies in both countries to do business with each other. This, in turn, could lead to increased economic growth and job creation.

The two nations already have a strong economic relationship. Bilateral trade between New Zealand and the United States was worth NZ$16.6 billion in 2020, making the US New Zealand’s third-largest trading partner. Agricultural products, wine, and high-tech products are among the goods that are traded most frequently between the two nations.

Negotiations for the free trade agreement are ongoing, and it is expected that both countries will continue to work towards a mutually beneficial agreement. However, there are potential hurdles that could slow down or derail the negotiations.

One issue that could prove challenging is the United States’ protectionist policies. President Trump’s “America First” agenda involves prioritizing US interests over those of its trading partners. This approach has been criticized by some, including New Zealand’s Prime Minister Ardern, who has stated that any agreement must be fair and mutually beneficial.

Another potential issue is the differing priorities of the two nations. New Zealand is seeking greater access to the US market for its agricultural products, while the United States is looking to gain better access to New Zealand’s dairy market. Negotiating a deal that addresses these priorities will be key to reaching a successful agreement.

Overall, a free trade agreement between New Zealand and the United States has the potential to bring significant economic benefits to both nations. However, negotiations are likely to be complex and challenging. As negotiations continue, it will be important for both parties to work together in good faith to reach an agreement that is fair, mutually beneficial, and strengthens the economic ties between the two nations.