New Zealand has reached agreement in principle for a far-reaching free trade deal with the United Kingdom which Jacinda Ardern says could be worth $NZ970 million ($A930 million) annually.
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Tariffs on the vast majority of Kiwi exports will end the day the deal is signed with dairy, beef and lamb to follow in later years.
"The market access outcomes are among the very best New Zealand has secured," Ms Ardern said.
"All tariffs on all products will be eliminated between both countries and the vast majority of these, 97 per cent, will be removed the day the FTA comes into force."
NZ is the second country to secure a free trade deal with post-Brexit UK following Australia's deal in June.
Ms Ardern said she hoped to sign the final deal next year.
Among the tariffs removed on day one are wine, honey, onions and some fish.
Wine is NZ's biggest export to the UK, worth $NZ463 million ($A444 million) annually.
Dairy products will take longer. Milk powder will lose tariffs after three years, with butter and cheese becoming tariff-free after five.
Dairy exports are NZ's biggest export globally, and Ms Ardern said milk and cheese producers will celebrate "commercially meaningful access".
Tariffs on sheepmeat and beef will be phased out over 15 years, but both products will see boosted tariff-free quotas from day one that far outstrip current exports.
NZ exports around 40 million tonnes of sheepmeat, and will be able to send 149 million tonnes a year upon completion.
Kiwi officials believe their in-principle deal is more substantial than Australia's deal with the UK, inked in June.
"We'd like to think we've got a lot more detail in our agreement than the Australians," a trade official told AAP.
NZ believes the deal will boost exports to Britain by 40 per cent, while the UK's exports to NZ will grow by 7.3 per cent.
Ms Ardern and UK Prime Minister Boris Johnson spoke on Wednesday night to seal the agreement.
"This is great trade deal for the United Kingdom, cementing our long friendship with New Zealand and furthering our ties with the Indo-Pacific," Mr Johnson said.
The UK says trade between the two nations was worth $NZ4.4 billion ($A4.2 billion) last year. Australian trade is worth $NZ22.8 billion ($A21.9 billion).
NZ has not yet agreed on a working holiday visa extension - as per the Australian deal, which extends the visa to three years and makes it accessible to Australians under 35.
"I myself was one of the benefactors of that scheme ... our expectation is we will be able to improve and extend that arrangement," Ms Ardern said.
However, it will be easier for British firms to set up office in New Zealand or bring workers to Aotearoa, with three-year visas automatically granted.
The deal has great historical relevance for older Kiwis.
New Zealand enjoyed preferable trade terms with the UK until 1973, when it opted to join the European Economic Community and cut off its South Pacific partner.
The episode is a defining chapter in New Zealand's modern history, as it suffered terribly while re-wiring its economy towards other partners - including a growing China.
"I didn't bring that up in the phone call with Prime Minister Johnson. I decided to park that long-standing grievance," Ms Ardern said, chuckling to herself.
"You'd be hard-pressed to find a better deal than this one. Perhaps it's time to put a line under that period."
Australian Associated Press
