New Australia-UK Free Trade Agreement set to bring unprecedented benefits to businesses
By Adeeba Khan In Industry News On 12th May 2023
A historic free trade agreement between Australia and the United Kingdom, known as the A-UKFTA, will take effect on May 31.
The trade agreement is considered the gold standard and is expected to provide unprecedented benefits to Australian businesses, as well as create new, well-paying jobs. The comprehensive agreement will eliminate tariffs on over 99% of Australian exports to the UK, opening up new export opportunities for the agriculture sector. This will include exports of wine, short- and medium-grain rice, honey, nuts, and manufactured products such as auto parts, electrical equipment, and cosmetic products.
Australia will have access to rising tariff quota volumes for some agricultural goods including cattle, sheep meat, dairy, and sugar, and these tariff quotas will be eliminated completely within 10 years. The elimination of tariffs on imports from the UK will result in savings of approximately $200 million per year.
After five years, all UK imports will be duty-free in Australia, easing household cost-of-living pressures and input costs for Australian enterprises. The deal also includes commitments on the movement of business people, making it easier to do business in the UK market, and covers services exports worth $4.4 billion in 2021-22.
The agreement also includes strong commitments to the environment, including climate change, and labour.
Source: Australian Government