Uk Australia Free Trade Agreement Update


The United Kingdom and the Commonwealth of Australia have been working towards a Free Trade Agreement (FTA) since 2016. After several rounds of negotiations and consultations, both countries finally announced the conclusion of their negotiations in June 2021. The UK Australia Free Trade Agreement is expected to bring significant benefits to both countries in the form of increased trade and economic growth.

The UK is Australia`s seventh-largest trading partner, and the FTA will help deepen economic ties between the two countries. According to the UK government, the deal will eliminate tariffs on a range of goods, including cars, Scotch whisky, and Australian wine. It will also make it easier for UK businesses to access the Australian market, particularly in the areas of financial services and technology.

Similarly, Australian businesses will benefit from the removal of tariffs on exports such as beef, lamb, and sugar. The FTA will also provide new opportunities for Australian services exports, including in the education and professional services sectors.

The agreement also includes provisions on labor mobility, which will allow UK and Australian citizens to work and live in each other`s countries more easily. The UK government estimates that this will benefit sectors such as agriculture and healthcare, where both countries face shortages of skilled workers.

The FTA has been welcomed by both governments and industry groups, who see it as a positive step towards post-Brexit economic growth for the UK and closer ties with the Asia-Pacific region for Australia. However, some critics have raised concerns over the impact the agreement could have on UK farmers, who may face increased competition from cheaper Australian imports.

The FTA still needs to be ratified by both countries` parliaments before coming into effect. The UK government has stated that it will be subject to a scrutiny process by the UK parliament, in which lawmakers will have the opportunity to review and debate the agreement before it is put to a vote.

Overall, the UK Australia Free Trade Agreement is set to be a significant milestone for both countries, strengthening their economic relationship and creating new opportunities for trade and investment. As negotiations continue, it will be interesting to see how the FTA will impact the wider global trading landscape, particularly with regards to the ongoing negotiations around the Trans-Pacific Partnership.