Trade Minister Todd McClay is confident a deal with the United Kingdom will be struck reasonably quickly once it leaves the European Union.

Photo: RNZ / Rowan Quinn

Mr McClay has met his British counterpart Lord Price who said negotiations with the EU started last week and could take up to two years.

New Zealand is the third largest investor in the UK and there is around $3 billion worth of trade flowing between the two countries.

Mr McClay said the trade ministers would now meet annually.

"This will lay the foundations for us to very quickly be able to do the work that we need to, including scoping studies, once the UK has left the European Union.

"And again I'd like to see us strike a deal within a few years, two or three would be an optimal period of time, although that will take a lot of hard work on both sides."

Mr McClay said both countries had a lot in common, which made negotiations easier.