Trade deal with New Zealand in reach after Jacinda Ardern's landslide victory, Liz Truss says

A trade deal with New Zealand is now in sight, Liz Truss has said as she prepares to step up negotiations in the wake of Jacinda Ardern’s landslide election victory.

Allies of the International Trade Secretary said Ms Ardern’s re-election had provided the opportunity to press ahead with talks, with the second round of negotiations due to commence on Monday.

The New Zealand Labour party’s resounding victory, which has handed it 64 seats in the country’s parliament, also leaves open the possibility that she will no longer need to form a coalition.

Government sources pointed out that the election had removed a potential obstacle to progress in Winston Peters, New Zealand’s former deputy prime minister and leader of the coalition party New Zealand First.

Mr Peters, who earlier this year claimed that the UK was not “match fit” for trade negotiations, has been ousted from parliament after his party crashed in the polls.

A Government source told The Telegraph: “We’re excited about the prospect of a deal with the Kiwis.

"This one has flown slightly under the radar with everything else that is going on, but Liz feels that Jacinda Ardern’s landslide win gives us the opportunity to pick-up where we left off before the election and strike a really forward-leaning deal in areas like tech and the environment.

“It’s part of our strategy to deepen trading ties with Pacific nations and like-minded countries who share our belief in democracy, free enterprise and the rule of law.”

With a trade deal with Japan complete, Ms Truss's team now hope to accelerate talks with New Zealand and are pushing to remove tariffs on goods such as British buses, cars, motorhomes and caravans, as well as chocolate and gin.

They also hope a deal will pave the way for more trade in services and greater investment between the two countries.

A series of agreements with New Zealand, Australia and Japan are seen as key to the UK joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership - one of the largest trade blocs in the world.

Ahead of the resumption of talks, Ms Truss said: “With Jacinda Ardern’s Government returned with a fresh mandate, I am looking forward to intensifying negotiations and making real headway on a deal over the coming months.

“New Zealand is an important ally, long-standing friend and a leading voice in global trade. We want a high-standards deal in key areas like digital and the environment, and to show the rest of the world that together we are prepared to advance rules-based free trade at a time of heightened protectionism.”