UK signs landmark trade deal with Australia

  • Prime Minister approves UK-Australia Free Trade Agreement during meeting with Australian Prime Minister Scott Morrison in London
  • UK cars, Scotch whiskey and confectionery will be cheaper to sell under the duty free deal, boosting industries that employ 3.5 million people in the UK
  • The deal also gives young people the opportunity to live and work in Australia and removes barriers for businesses
  • Prime Minister hails ‘new dawn’ in UK relations with Australia as leaders also agree to step up cooperation on security, climate change and science and technology

The UK has struck a trade deal with Australia eliminating tariffs on all UK goods and boosting jobs and businesses across the country, in the first major trade deal negotiated from scratch by the UK government since we left the EU.

The main elements of the deal were agreed by Prime Minister Boris Johnson and Australian Prime Minister Scott Morrison at a meeting in Downing Street last night. [Monday 14 June]. A final agreement in principle will be published in the coming days.

The leaders reaffirmed the enduring partnership between the UK and Australia during their discussion and agreed to work closely on defense, technology collaboration and tackling climate change, including through a future partnership for clean technologies.

The new free trade agreement means iconic British goods like cars, Scotch whiskey, cookies and ceramics will be cheaper to sell in Australia, boosting British industries which employ 3.5 million people across the country . The UK-Australia trade relationship was worth £ 13.9 billion last year and is expected to grow under the deal, creating opportunities for businesses and producers across the board. regions of the United Kingdom.

UK farmers will be protected by a cap on duty-free imports for 15 years, using tariff quotas and other guarantees. We also help agricultural producers increase their exports abroad, including to new markets in the Indo-Pacific.

Under the agreement, Britons under 35 will be able to travel and work in Australia more freely, opening up exciting opportunities for young people.

Prime Minister Boris Johnson said:

Today marks a new dawn in UK relations with Australia, supported by our shared history and shared values.

Our new free trade agreement opens up fantastic opportunities for UK businesses and consumers, as well as young people who want the chance to work and live on the other side of the world.

This is global Britain at its best – looking outward and making deals that deepen our alliances and help ensure every part of the country rebuilds itself better after the pandemic.

The free trade agreement will eliminate tariffs on Australian favorites like Jacob’s Creek and Hardys wines, swimwear and confectionery, increasing choice for UK consumers and saving households up to £ 34million per year.

It will deliver benefits across the UK including:

  • Scotland exported £ 126million of drinks to Australia in 2020 – the deal will help distillers by removing tariffs of up to 5% on Scotch whiskey.
  • More than 450 companies from Wales exported to Australia last year, and life science companies and chemical manufacturers stand to benefit in particular.
  • 90% of all Northern Ireland exports to Australia are machinery and manufactures – widely used in Australia’s mining, quarrying and recycling industries. Under the new FTA, tariffs will be removed and customs procedures will be simplified.
  • Automakers in the Midlands and northern England will see their tariffs cut by up to 5%, boosting demand for their exports.

An FTA with Australia is also a gateway to the fast-growing Indo-Pacific region and will strengthen our candidacy to join the CPTPP, one of the largest free trade areas in the world, covering 9 trillion dollars. GDP sterling and 11 Pacific countries from Australia to Mexico.

Secretary of State for International Trade Liz Truss said:

This deal is good for Britain and shows what we can achieve as a sovereign trading nation. This is a fundamentally liberal deal that removes tariffs on all UK products, opens up new opportunities for our service providers and tech companies, and makes it easier for our people to travel and work together.

The deal paves the way for us to join the Trans-Pacific Partnership, a £ 9 trillion free trade area home to some of the biggest consumer markets now and in the future.

Membership will create unprecedented opportunities for our farmers, manufacturers, innovators and investors to do business in the engine room future of the global economy.

The agreement’s ambitious commitments on market access for service professionals, cutting-edge digital arrangements and lowering barriers to investment will benefit the UK services sector.

The UK exported £ 5.4bn in services, including £ 1.4bn in insurance and pension services and £ 780m in financial services, to Australia in 2020. Bureaucracy and red tape will be cut for more than 13,000 small and medium-sized businesses across the UK that already export goods to Australia, with faster export times.

Parliament will have the opportunity to examine the agreement in detail once the text is published, accompanied by an impact assessment and an explanatory memorandum.

Federation of Small Business National President Mike Cherry said:

A trade deal with Australia will be great news for many of our members who have been exporting there for a long time as well as for those hoping to expand their trade ambitions.

As we look beyond the pandemic and reap the benefits of post-Brexit growth, deals like this will yield vast benefits for small businesses across the UK. About 40% of UK small businesses that do international trade already do so with Australia, and a trade deal that could be worth up to £ 900million will only increase those numbers.

The inclusion of a chapter on small businesses in this agreement will also ensure that the needs of small businesses are fully taken into account in the years to come.

TechUK CEO Julian David said:

Australia is a key market for the UK tech sector and an important gateway to the wider Indo-Pacific region. The free trade agreement announced today contains the most advanced digital trade provisions of any deal the UK has signed so far, opening up opportunities for our innovative companies operating in emerging technologies, such as AI and clean technologies.

The provisions relating to the free movement of data and the ban on the localization of data will allow our SMEs in particular to explore the market without the cost of setting up servers. We look forward to working with our industry and government to ensure the sector takes full advantage of these cutting edge digital trade arrangements.

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