New Zealand and the United Kingdom have signed a free trade agreement (FTA) that will reduce tariffs on a range of products exchanged between both countries.

In a joint statement, Prime Minister Jacinda Ardern and Minister for Trade and Export Growth Damien O’Connor said the deal will give a boost of almost $1 billion to New Zealand GDP.

“Prime Minister Boris Johnson and I spoke yesterday evening to mark this historic moment and its importance in forging a stronger and more dynamic future relationship between two close friends and partners,” Ms Ardern said.

She added that the deal “serves New Zealand’s economy and exporters well as we reconnect, rebuild and recover from COVID-19, and look forward into the future.”

The UK will cancel all tariffs on New Zealand exports, including honey, wine, kiwi fruit, onions, a variety of dairy and meat products, and most industrial products.

UK Prime Minister Boris Johnson said the trade deal is good for both nations’ economies, given the relationship between them.

“It is good for both our economies, boosting jobs and growth as we build back better from the pandemic.

“We already share deep ties of history, culture and values, and I look forward to the next chapter in our friendship,” Mr Johnson said.

The draft deal is the latest to be brokered by the U.K. after its withdrawal from the European Union, following a free trade agreement between itself and Australia in June.

The trade deal, however, has met some opposition with British farmers.

The National Farmers Union pointed out on Thursday that farmers will now face “significant extra volumes of imported food – whether or not produced to our own high standards – while securing almost nothing in return for UK farmers.”