After six months after Brexit came into effect, the UK has finally found a trade deal with Australia. And it is not simply a revision of an already existing agreement or an adaptation of those already in force between the European Union and other countries. “Today marks a new era in UK-Australian relations”, with a free trade agreement that offers “fantastic opportunities for UK businesses and consumers,” Prime Minister Boris Johnson said in a Downing Street press release.
The British leader agreed on the main lines with his Australian counterpart Scott Morrison on Monday evening in London. The agreement is expected to be published in the next few days and will then need to be signed. It will allow all British goods to enter Australia duty free, and will benefit the automotive industry, Scotch whiskey, biscuits and other ceramics. Trade between the two countries amounted to £ 13.9 billion in 2020.
An agreement intended to reassure British farmers
The agreement also ensures to protect British farmers, who were concerned about competition from Australian products, such as beef and lamb, with more flexible health standards, the statement said. There is a limit on imports on British soil without customs duties for 15 years, in particular through quotas. The government also wants to help British agricultural producers find other export outlets, including in the Indo-Pacific region.
London hopes that this agreement with Australia will more easily open the doors to the Trans-Pacific Trade Treaty (CPTPP), which brings together 11 countries in America and Asia, and which authorized the United Kingdom in early June to initiate the procedure for join this vast free trade area.
The United Kingdom has already obtained agreements with the European Union and Japan and is in discussions with India and New Zealand. Negotiations are planned with Canada and Mexico. London also still expects to secure a trade deal with the United States, although progress seems meager so far. It was not mentioned in the reports of the meeting between Boris Johnson and US President Joe Biden on Thursday on the eve of the G7 in Cornwall (south-west of England).
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