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With regard to specifically the British Type 26 Frigate program there is something else at play here and that is the current negotiations between the United Kingdom and New Zealand in regard to the free trade agreement they are working on. An agreement in principle was supposed to be reached between the two parties by 30th of August, but that day has passed and reports are that hurdles need to be overcome that are not trivial. The New Zealand negotiators are under instruction to try and get the same agricultural market access as what we had before the UK joined the European Union in 1973. But this won’t be easy with significant sensitivities from the British side particularly with beef, lamb and dairy – the exact products NZ wants to market access for. Many will be aware that when the UK joined the EU this was an absolute sledgehammer blow to the New Zealand economy and this played no small part to the relative economic decline that New Zealand suffered for decades afterward. So, regaining access to our ‘traditional market’ is something that has been dreamed of by both the NZ Government and exporters for quite a long time.
During most trade negotiations the New Zealand Government and trade negotiators often have limited bargaining power as the country has one of the most open markets in the world and therefore has little tariffs and trade barriers that can be taken down in exchange market accesses somewhere else. This time things are a bit different though, as Britain wants to join the CPTTP and as one of the agreements founding members, New Zealand has veto powers over them joining and they are threatening to use this against the UK unless major headway is made in opening up agricultural trade. There is however another very powerful card New Zealand has up it’s sleave here if they choose to use it, and one far less punitive. That would be including an order of three Glasgow built, type 26 frigates, as part of the FTA. Boris Johnson made comments in Perth in 2019 that he thinks New Zealand will ‘come in’ to the type 26 frigate program - so you can be fairly certain that the UK has brought that up during negotiations. If New Zealand did decide to go ahead with an order this would be a breakthrough for UK Shipbuilders, a major political win for Johnson and his ‘Global Britain’ and it would provide an injection of many billions of dollars into the economy right when its needed. If this was handled intelligently, combined with the CPTTP issue, the NZ Government could even get us our old agricultural market access back.
Some sort of deal here would likely have the following benefits for New Zealand: Provide the RNZN with three world class ASW frigates. Make New Zealand more of a contributor to the international rules-based order and improve the countries relationship with security partners and in particular Australia. Diversify trade away from being extremely reliant on one trading partner – yet again. Allow our exporters to help pay for the new warships through their new trade access. This would also likely be a major political win for Jacinda Ardern as she would forever be known as the PM who got our old trade access back and this would also likely muzzle her annoying farmer protestors.
And if the Poms still won’t play ball maybe offer the same sort of agricultural trade access for 4 plus Mogami Frigates past the Japanese