The UK’s trade deals with Australia and New Zealand came into force at midnight on Wednesday, removing tariffs on all UK goods exports Down Under.
Under the deals’ terms tariffs on all UK goods exports to Australia and New Zealand will be removed, access to these markets for services unlocked, and red tape slashed for digital trade and work visas.
The UK government handpicked iconic British goods to send to the Australian and New Zealand trade ministers as part of the first shipment under the new arrangements. Signed Beano comics, personalised Cambridge Satchels, Brighton Gin, and an England cricket top signed by James Anderson and Emma Lamb were included in the special parcel.
Business and Trade Secretary Kemi Badenoch welcomed the “historic moment” of the deal coming into effect, adding that it would drive UK’s economic growth, innovation, and higher wages.
The deal is set to deliver an economic boost by driving bilateral trade up by 53 percent with Australia and 59 percent with New Zealand, the government said. UK consumers could also see a reduction in prices on wine, Tim Tams, and kiwi fruit and lowered costs on machinery parts for UK manufacturers.
“Australia and New Zealand are two of our closest friends and likeminded partners and our trade deals secure favourable terms for British exporters, removing tariffs on all UK goods and slashing red tape,” said minister for international trade Nigel Huddleston.
Founder and Managing Director of Brighton Gin Kathy Caton recognised the benefits of removing trade barriers for the British gin industry.
“With a Brighton in every state in Australia, one of our goals is to see Brighton Gin being served in every one! Hopefully the free trade agreement gets us one step closer to that,” Caton said.
Alongside the new trade deals, young Brits will benefit from the expansion of the shared Youth Mobility and Working Holiday Maker visa schemes.
Worrying Chapter
The trade deals with Australia and New Zealand are part of the UK’s strategic tilt to the Indo-Pacific region and complement the accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a trade bloc made up of 11 countries.The government also suggested that the new deals will protect British farmers and include staging tariff liberalisation for sensitive goods over time.
However, Plaid Cymru said that the new trade deals with Australia and New Zealand commenced “a worrying chapter for Welsh farming.”
“UK has granted ultimately unrestricted access to our markets for produce from two major agricultural nations, all in pursuit of convenient headlines. Give Wales a say in future trade deals,” said the party’s agriculture spokesman in Westminster, MP Ben Lake.
The UK agricultural sector has been wary of the negative impact of the deal on farmers. Commenting on the trade agreement in December 2021, the President of the National Farmers’ Union Minette Batters called the deal “one-sided” and said there was “extremely little in this deal to benefit British farmers.”
Batters expressed concern over the increase in pressure on farmers already facing inflation and labour shortages.
Former Environment Secretary George Eustice told MPs last year that the UK-Australia Free Trade Agreement “gave away far too much for far too little in return.”
