Trade deal with New Zealand opens the path of slightly cheaper Sauvignon Blanc, if you can find any

The recent trade deal announced by Britain with New Zealand will see tariffs dropped on wine and primary produce such as lamb exported to the UK, while New Zealand will remove tariffs on UK goods, primarily manufactured goods such as cars and farm equipment.

The deal may be done, but a world-wide shortage of Marlborough’s famous Sauvignon Blanc, after a frost-affected 2021 vintage, means there is not going to be a Sauvalanche anytime soon.

The duty saved in the trade deal is pretty small. Currently a wine from New Zealand gets hit by three taxes. £2.20 duty, 20% VAT worth £1.33 for an £8 bottle of wine and customs duty of 8p per bottle. The total duty on typical New Sauvignon Blanc before the trade deal was £3.64 for an £8 bottle of wine. It will now be £3.56.

The customs duty has always been a requirement under the EU, which mandated that only EU countries were exempt. Since Brexit, the UK has kept the EU exempt from customs duty, but has negotiated it away with trade deals with New Zealand.