Formal trade negotiations between the EU, Australia and New Zealand have been given the green light to be opened in June and have been welcomed by the European Commission. The EU has stolen a march on any potential post-Brexit free-trade agreement between the UK and the two countries. The EU views these markets as a large opportunity for future exports.

“These agreements will build on the recent successful agreements with Canada, Japan, Singapore, Vietnam and Mexico among others, expanding the alliance of partners committed to open and rules-based global trade. Open trade must go hand in hand with open and inclusive policy making,” said President of the European Commission, Jean-Claude Juncker.

Historically, European countries has vied with both countries for market access in potentially lucrative food markets such as in China and Japan. With the UK intending to leave the customs union post-Brexit it might not be as big of a concern for Scotland. However, it could also be a concern for potentially tariff-laden British lamb being sold into the premium European market with increased competition coming in the form of New Zealand lamb in particular.

Australia and New Zealand enjoy geographically closer proximity to the growing Asian market and have an established trade of beef and dairy products to the area.

“Together, we will now negotiate win-win trade deals that create new opportunities for our businesses, as well as safeguard high standards in key areas such as sustainable development.”

The Commission has stated that having a trade deal with the countries will widen the entry point for businesses in the Asia-Pacific region.