Australian Prime Minister Anthony Albanese says the Free Trade Agreement with the UK begins at the end of May.
During his current visit to the United Kingdom, Anthony Albanese announced that May 31 is the date of the commencement of the Free Trade Agreement, following the expected completion of UK domestic processes.
Based on the agreement, no tariffs will apply to almost all Australian exported goods, while more Australians will be able to enjoy longer working holidays in UK.
“The Australia-UK FTA (A-UKFTA) represents one of the most comprehensive, innovative and ambitious free trade agreements concluded by Australia to date and strengthens an already close relationship between Australia and the UK,” said the Australian Prime Minister.
Under the deal, many Australian businesses will gain significant benefits and will be able to create additional jobs as exporting becomes easier.
While the Australian agricultural industry will gain an extra market and be able to export more wine, grain, rice, honey, nuts, and other products, other sectors such as the automotive parts industry, electronic equipment and cosmetic products will also benefit.
However, the export of agricultural products, such as beef, lamb, dairy and sugar, may take longer as tariff quotas are removed over the next decade; meanwhile, Australia will have access to expanding tariff quota volumes.
Furthermore, Australia will save approximately $200 million per year as UK imports enjoy no tariffs.
Furthermore, all UK imports will enter Australia duty-free in five years’ time, which will further ease the cost of living for average Australians and input costs for businesses.
For the service sector, which was worth $4.4 billion in 2021-2022, this trade deal will further assist the services exports, making it easier to do business in the UK market.
More importantly, the FTA also provides a foundation for professional bodies to reach a deal for qualified professionals between the two countries to help ease the skills shortage in Australia.
During a visit to Bondi Green, an Australian-themed restaurant in London, on May 4, Anthony Albanese told reporters that the FTA between both countries means “greater access to this market for Australian products—greater access for our beef, for our sheep products, for our wine”
“[G]reater access for our beef, for our sheep products, for our wine.”
After a two-year period, 99 percent of Australian exports to the UK would be free from any tariffs, and the same would apply to UK products arriving in Australia.
“[T]he imports that we get from the UK, if you cut the taxes and cut the tariffs, then they are by definition cheaper, and that will have a positive impact on our economy,” Albanese said.
FTA Will Deepen Bilateral Relationship
Don Farrell, the minister for Trade and Tourism, said the agreement would further deepen the already strong bilateral business relationship as the UK is Australia’s second-largest direct foreign investment nation.“This deal establishes procedures for artists, including First Nations peoples, to receive royalties when their artworks are resold in the UK.”
After a two-year phase-in period, Australians will be able to apply for working holidays in the UK to the age of 35—up from 30 and stay for a maximum of three years instead of two.
UK citizens coming to Australia can also work for three years.
Albanese said he expected to complete the trade agreement timetable during a meeting with UK Prime Minister Rishi Sunak on May 5, allowing the deal to come into force on May 31. The UK government said on May 4 that its free trade agreement with New Zealand, with similar conditions, would also start on the last day of May.
