The UK-Australia free trade deal will “eliminate” tariffs on UK goods and boost jobs and businesses across the country, it has been suggested.
The terms and conditions of an Agreement in Principle were laid out today, 15 June 2021, by Prime Minister Boris Johnson and Australian Prime Minister Scott Morrison.
According to the Department for International Trade (DIT), the deal will centre around trade and cooperation, as well as defence, technology and tackling climate change, through what is known as the “Clean Tech Partnership”.
The documents suggest that potentially hundreds of tariffs will be removed on goods such as cars, Scotch whiskey, biscuits, and ceramics, making them cheaper to export into Australia. British farmers and agriculture businesses will also be protected by a cap on tariff-free imports for 15 years.
The agreement will also slash tariffs and fees on Australian imports, such as Jacob’s Creek and Hardys wines, swimwear, and confectionery, saving British households approximately “£34 million a year”.
Travel opportunities will also be expanded for Brits under the age of 35, who will be able to travel and work in Australia “more freely”.
Commenting on the deal, Prime Minister Boris Johnson said: “Our new free-trade agreement opens fantastic opportunities for British businesses and consumers, as well as young people wanting the chance to work and live on the other side of the world.
“This is global Britain at its best – looking outwards and striking deals that deepen our alliances and help ensure every part of the country builds back better from the pandemic.”
Secretary of State for International Trade, Liz Truss, added: “It is a fundamentally liberalising agreement that removes tariffs on all British goods, opens new opportunities for our services providers and tech firms, and makes it easier for our people to travel and work together.
“The agreement 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 of the present and future.”
According to the latest statistics, UK-Australia trade is worth approximately £13.9 billion each year, with 13,000 small and medium-sized businesses exporting products to Australian markets annually.
For help and advice with related matters, please get in touch with our international trade team today.