Key hoses down talk of Kiwi-Aussie joint approach to post-Brexit negotiations

Monday 27th June 2016

The New Zealand and Australian Prime Ministers discussed both countries' responses to the UK referendum to leave the European Union, although John Key was lukewarm on the potential for the two countries to collaborate on new trade and other agreements that the split will require.

"We are quite similar in our approaches," Key told his weekly post-Cabinet press conference. "Where it makes sense we will cooperate" but he doubted they would pursue a joint free trade agreement as the two countries "focus on different things."

New Zealand has already begun talks on an FTA with the EU, so that was "technically further ahead" than any potential such agreement with the UK, said Key, who may announce a shift in travel plans next week to allow him to take soundings on the ground in Europe in the near future.

Asked whether the Brexit might create opportunities for New Zealand exports, Key was doubtful. The UK and EU would be negotiating for access to one another's markets and groups such as Irish farmers would remain focused on preserving their own market access.

"I don't think there will be a reduction in export opportunities, but I'm not optimistic it will dramatically improve opportunities in the UK."

Meanwhile, a Ministry of Foreign Affairs and Trade taskforce has been charged with developing a strategy for dealing with the multiple changes to existing agreements that currently cover the UK by virtue of its EU membership.

In the short term, however, Key reiterated assurances from both UK and EU officials that New Zealand's trade access and rights regarding the movement of people would not be affected while Britain remains an EU country. The process of negotiating the UK's departure from the EU is scheduled to take two years from the date London triggers Article 50 of the Lisbon Treaty and is widely expected to take longer.

BusinessDesk.co.nz

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