Britain had first applied for admission to the European Economic Community (EEC) in 1963. British membership of the EEC would in effect exclude New Zealand from the British market. The 1971
Luxembourg agreement brought New Zealand butter, cheese and lamb exports some time when Britain finally joined the EEC in 1973. By then New Zealand’s exports to the ‘Mother Country’ had fallen to less than 30% of all exports, and within two decades they would be below 10%.
As well as our major export market, Britain had long been New Zealand’s main supplier of imports. When Britain entered the EEC all bilateral agreements between New Zealand and Britain had to be terminated, and preferential treatment of British imports into New Zealand ended in 1977. From 43% of our total imports in 1960, imports from Britain had fallen to 14.5% by 1980.