New Zealand trade deal: PM hails 'great' new pact - but NFU warns it offers 'almost nothing' for British farmers

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British sheep farmers could face increased competition from New Zealand lamb imports as a consequence of a free-trade deal which has been secured and hailed as “great” by Prime Minister Boris Johnson.

The deal, agreed in-principle by Mr Johnson and his counterpart Jacinda Ardern during a video call on Wednesday, will cut tariffs on British exports including cars and clothes, and popular New Zealand imports including wine and honey as well as lamb.

The National Farmers’ Union (NFU) said it was worried about the implications of an agreement it said “offers nothing in return” to British farmers.

Trade between the UK and New Zealand was worth £2.3bn last year, equivalent to 0.5% of the UK’s commerce with the European Union, but the government expects volumes to increase as a consequence of the deal.

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It is the second free trade agreement (FTA) reached from scratch since Brexit after that with Australia, though London and Canberra are yet to sign a deal first announced with some fanfare in June.

Ministers hope it will further the UK’s goal of joining the Pacific trading bloc that includes Australia, New Zealand, Canada and Japan.

The principles of the New Zealand FTA are similar to the Australian accord, with the most controversial tariffs, on agricultural goods, phased out over a 15-year period to try and ease the concern of British farmers.

Under the deal New Zealand exporters will be able to send 35,000 tonnes of lamb to the UK tariff-free for the first four years, rising to 50,000 tonnes for 10 years before quotas are removed altogether.