Australia-UK sign free trade agreement

December 20, 2021 08:49 PM AEDT | By Sukriti Nair

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Australia-UK sign free trade agreement — Image source: © Adiruch | Megapixl.com

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Highlights

Australia-UK have inked an FTA (Free Trade Agreement) on Friday.

Australia-UK FTA ends most taxed on exports from Australia

The deal pushes growth for the Food and beverage industry, alongside access to jobs in UK.

Australian trade minister- Dan Tehan and Britain’s secretary of state for international trade- Anne-Marie Trevelyan, on Friday, established a free trade agreement between Australia and Britain. The FTA was signed virtually and eliminates most of the taxes on exports between the two.

What benefits does the Australia-UK FTA bring?

Once in force, the FTA brings in a whopping AU$9.2 billion worth of benefit to exporters via immediate elimination of tariffs on more than 99% of Australian exports to Britain.
Australian farmers to have access to over 65 million UK customers for safe, sustainably produced food and beverages in Australia. Australian wine exports will save around AU$43 million yearly on customs
Tariff-free quota for beef and sheep meat, will expand to 110,000 tonnes and 75,000 tonnes a year and tariff will be eliminated fully after ten years. In case of Sugar, the tariff-free quota will expand to 220,000 tonnes a year and tariff will be eliminated after eight years.

Also Read: Australia wins WTO dispute against India's export sugar subsidies

Australian professionals to have equal access to UK’s jobs market as other European competitors. Australian job seekers will then be on equal footing with EU nationals, as a first time move in 40 years.
British imports to become cheaper and Australian businesses and households will be able to save around AU$200 million every year on cars, confectionery, cosmetics, The tariffs on almost all UK imports will be eliminated in a phased-out manner in five years, from FTA coming into force.
Australian businesses will also have a guaranteed right to bid on various UK government contracts a market worth half-a-trillion Australian dollars annually.

The deal is set to be effective in 2022, and the Federal government claims that it will help in recovery from the pandemic while pushing investments. Both countries will offer enhanced opportunities to each other.

Bottom line

For Australia, it is the most thorough free trade agreement with any nation after with New Zealand. Even Britain has been aggressively pursuing trade deals after ‘Brexit’. The Australia-UK FTA may help it gain access to a Pacific nation.

Also Read: Australia & UK scrap travel ban against Southern Africa

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