The United Kingdom’s Economic Relations with New Zealand and Australia after Brexit

Abstract

ABSTRACT This article examines the current state of economic relations that the United Kingdom has with New Zealand and Australia, in light of the former’s decision to leave the European Union. Although there are prospects for future trade between these countries post-Brexit based on the three countries’ current comparative advantages, perhaps the greatest scope is for greater trade in services along with greater investment flows. Trade in food produce would be affected by changes in trade policy post-Brexit but other goods such as forestry, mineral and manufacturing products would be more affected by changes in general economic conditions and the relative competiveness of the industries in international markets. Already these aspects of trade are important and are expected to grow and develop over time. Much of the future negotiations between the three countries will take up a range of issues associated with investment and the trade in services and much of the future prospects for growth in trade might depend on the success of these negotiations.