The new Australia-UK Free Trade Agreement is set to deliver more Australian jobs and businesses for exports, according to the Australian Trade and Investment Commission.
With Prime Ministers Scott Morrison and Boris Johnson agreeing on the broad outlines of an Australia-UK Free Trade Agreement (FTA), Austrade said that this will bring both countries closer together in a strategic environment.
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For Australia, one significant boost is that Australian producers and farmers can get greater access to the UK market.
Austrade said Australian consumers will benefit from cheaper products, with all tariffs eliminated within five years, and tariffs on cars, whisky, and the UK’s other main exports eliminated immediately.
The FTA will also see the UK liberalising Australian imports with 99 per cent of Australian goods, including Australian wine and short and medium grain milled rice, entering the UK duty free when the agreement enters into force.
In particular, beef tariffs and sheep meat tariffs will be eliminated after ten years. During the transition period for beef tariffs, Australia will have immediate access to a duty-free quota of 35,000 tonnes, rising in equal instalments to 110,000 tonnes in year 10. For sheep tariffs, the country can access a duty-free quota of 25,000 tonnes, rising in equal instalments to 75,000 tonnes in year 10.
Austrade also explained that sugar tariffs will be eliminated over eight years and dairy tariffs for over five years.
The FTA will also see Working Holiday Visa makers in the UK to get expanded rights, enabling them to stay for three years with an increased cut off age of 35.
Additionally, professionals will benefit from provisions to support mutual recognition of qualifications and greater certainty for skilled professionals entering the UK labour market.
This ambitious bilateral free trade agreement will help pave the way for the UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
The two countries will now finalise the text and carry out the domestic processes required to enable signature and the subsequent entry into force of the FTA.
Source: Austrade