Yesterday the Government agreed an historic free trade deal with Australia – our first major trade deal negotiated from scratch since we left the EU – eliminating tariffs on all UK goods and boosting jobs and businesses across the country as we build back better as a truly global Britain.
As a newly sovereign free trading nation, we now have the opportunity to strike out in to the world and grasp the new opportunities that lay ahead of us through free-trade agreements with our friends and allies around the world.
This historic new free-trade agreement with Australia is the first major trade deal negotiated from scratch since we left the EU. The deal will create new opportunities for UK businesses and consumers, remove tariffs on all British goods, open up new markets for our services providers and tech firms, and make it easier for people to travel and work, including young people who want the chance to work and live on the other side of the world - Brits under the age of 35 will be able to travel and work in Australia more freely, opening exciting opportunities for young people.
The new Free Trade Agreement means iconic British products like cars, Scotch whisky, biscuits and ceramics will be cheaper to sell into Australia, boosting UK industries that employ 3.5 million people across the country. The UK-Australia trade relationship was worth £13.9 billion last year and is set to grow under the deal, creating opportunities for businesses and producers in every part of the UK.
The free trade deal will similarly eliminate tariffs on Australian favourites like Jacob’s Creek and Hardys wines, swimwear and confectionery, boosting choice for British consumers and saving households up to £34 million a year.
An FTA with Australia is also a gateway into the fast-growing Indo-Pacific region and will boost our bid to join CPTPP, one of the largest free trade areas in the world, covering £9 trillion of GDP and 11 Pacific nations from Australia to Mexico.
British farmers will be protected by a cap on tariff-free imports for 15 years, using tariff rate quotas and other safeguards, and we are also supporting agricultural producers to increase their exports overseas, including to new markets in the Indo-Pacific.
The deal’s ambitious commitments on market access for services professionals, cutting-edge digital provisions and reduced barriers to investment will benefit the UK’s service sector.
The UK exported £5.4 billion worth of services, including £1.4bn of insurance and pension services and £780m of financial services, to Australia in 2020. Red tape and bureaucracy will be torn down for more than 13,000 small and medium sized businesses across the UK who already export goods to Australia, with quicker export times.
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 on Monday 14 June. A final Agreement in Principle will be published in the coming days. Parliament will have the opportunity to scrutinise the agreement in detail once the text is published, along with an impact assessment and explanatory memorandum.
This is global Britain at its best – looking outwards, taking a leading role on the world stage, striking new deals that deepen our alliances and ensuring every part of our union can build back better from the pandemic.
For more information on UK’s historic trade deal with Australia, including comments from the Prime Minister and Secretary of State for International Trade, please visit: https://www.gov.uk/government/news/uk-agrees-historic-trade-deal-with-australia.
