Shoppers in Britain will enjoy cheaper wine after a new post-Brexit trade deal with New Zealand was signed on Monday.

Tariffs on favoured New Zealand products such as Sauvignon Blanc will be slashed by five per cent, knocking an average of 20 pence off the cost of each bottle imported from the country.

Manuka honey and kiwi fruit should also become cheaper to import into the UK, while British-made exports such as clothing, footwear, buses, ships and bulldozers will have tariffs as high as 10 per cent removed.

Anne-Marie Trevelyan, the International Trade Secretary, said: “This deal will slash red tape, remove all tariffs and make it easier for our services companies to set up and prosper in New Zealand. 

“Our trade with New Zealand will soar, benefiting businesses and consumers throughout the UK and helping level up the whole country.”

The deal, agreed in principle in October, will also benefit British lawyers and architects, who will be able to work in New Zealand more easily. Negotiators spent 16 months working on the pact, which is expected to deliver an £800 million boost to the UK economy.

‘We will scrutinise the deal and hold the Government to account’

Almost 6,000 smaller British businesses will find it easier to break into the New Zealand markets, as the amount of customs red tape on trade is slashed.

But British farmers have raised concern over the impact that cheaper exports from New Zealand, such as lamb, will have on their industry. An impact assessment published by the Government suggested agriculture and other food-related sectors could take a £150 million hit from the agreement.

The overall deal was forecast to deliver an economic gain of between 0.02 per cent and 0.03 per cent by 2035 – a total of around £12 per person.

Nick Thomas-Symonds, Labour’s shadow trade secretary, said: “Labour is supportive of a free trade deal with New Zealand that supports jobs, businesses and livelihoods, promotes UK interests and increases exports.

“We will scrutinise the deal and hold the Government to account on the promises that have been made, especially with the farming and agriculture sector. The Conservatives undercut our farmers in the Australia deal – this deal must do the opposite and support the agriculture sector.”