British Prime Minister Boris Johnson (R) elbows Australian Prime Minister Scott Morrison (L) at the door of 10 Downing Street in London, UK on June 14, 2021.
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The UK has signed a free trade agreement with Australia that marks a “new morning” in its relations with the country.
The deal – known as the Free Trade Agreement or FTA – means it will cost less for British companies to sell products such as cars, confectionery and scotch whiskey to Australia, the British government said on Tuesday.
The move will boost UK industries, which employ 3.5 million people nationwide, he added.
“Today marks a new dawn in Britain’s relations with Australia, one that is based on our common history and values,” British Prime Minister Boris Johnson said in a statement.
“Our new free trade agreement opens up fantastic opportunities for UK businesses and consumers, as well as young people who have the chance to work and live on the other side of the world.”
The deal was announced late Monday when the Australian Trade Secretary said Johnson and his Australian counterpart Scott Morrison had agreed on the general terms of the deal over dinner on Downing Street in London.
The UK is keen to conclude trade deals with nations around the world after leaving the EU, but the deal is not without controversy. British farmers, for example, have raised concerns that they could be undercut by cheap Australian agricultural imports and Australian food standards.
To address those concerns, the government said Tuesday that British farmers “will be protected for 15 years by a cap on duty-free imports, using tariff quotas and other safeguards”.
“We also support agricultural producers in increasing their exports overseas, including to new markets in the Indo-Pacific,” it said.
Post-Brexit trading
The free trade agreement with Australia is the first major deal the government has negotiated from scratch since the UK left the EU. A final “Memorandum of Understanding” will be published in the coming days.
The deal is believed to be the forerunner of Britain’s accession to a broader Asia-Pacific free trade agreement known as the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP).
On Tuesday, the government said the trade deal with Australia “is also a gateway into the fast-growing Indo-Pacific region and will bolster our bid to join CPTPP, one of the largest free trade areas in the world that covers £ 9 trillion GDP and 11 Pacific nations from Australia to Mexico. “
The UK was Australia’s fifth largest trading partner in 2019 and 2020, and last year the UK-Australia trade relationship was £ 13.9 billion ($ 19.6 billion).
Trade is expected to increase under the deal, the government said, adding that it will also provide more opportunities for young people (Britons under 35 will be able to travel and work more freely in Australia under the deal).
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