The Australia-United Kingdom Free Trade Agreement (A-UKFTA) will come into effect on 1 June, once the UK has completed its domestic processes, Prime Minister Anthony Albanese said during his UK visit.
The FTA will cover around 75 per cent of trade between the two countries and remove more than 99 per cent of tariff on goods being exported to the UK over the next 10 years.
Albanese said the FTA would deliver “significant benefits” to Australian exporters, consumers, workers, and the economy.
“The Australia-UK FTA 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,” Albanese said.
The government expects savings of around $200 million a year as tariffs on UK imports are eliminated. After five years, all UK imports to Australia will be duty free.
Commercial seafood industry body Seafood Industry Australia (SIA) said the FTA would see “unparalleled access to more than 65 million UK customers”.
SIA CEO Veronica Papacosta said the agreement is expected to create a wealth of new opportunities for the Australian seafood industry and strengthen trade ties between the UK and Australia.
The agreement will eliminate tariffs on Australian seafood exports to the UK, including lobsters and fin-fish on entry into force, and the remaining tariffs will be eliminated over a three year period.
“Our Australian seafood producers now have access to more than 65 million UK consumers who value our safe, healthy, and sustainably produced great Australian seafood. While UK consumers will have access to the greatest seafood in the world, tariff-free,” said Papacosta.
The move will also help to increase the competitiveness of Australian seafood in the UK market and will provide new opportunities for Australian seafood companies to expand international operations and diversify markets.
In 2020-21, Australian seafood exports to the UK were worth only $720,000. The new agreement is expected to significantly boost this figure in the coming years.
“Australian seafood is well regarded in the UK. Our fisheries are some of the most highly regulated and well managed in the world. Our sustainability credentials are very compelling, which for UK customers is a major competitive advantage. Our customers know they are getting high-quality products from sustainably managed fisheries. While our Australian exporters are known for their reliability and professional service,” said Papacosta.
Meanwhile, Australia-UK Red Meat Market Access Taskforce chair Andrew McDonald said Australia and the UK had a long history of trade, with British consumers being loyal purchasers of Australian beef and sheepmeat.
“The FTA provides an opportunity to modernise our trading relationship for the future, and we look forward to more streamlined trade and reduced supply chain costs with the implementation of the agreement,” McDonald said.
From midnight 31 May, Australian beef and sheepmeat exports will enter the UK under a new tariff rate quota (TRQ) regime – with initial TRQ tonnages gradually increasing over a 10-year transition period. Product within the TRQ amounts will enter tariff free. While there will be no TRQ regime post year 10, a volume safeguard provision will apply until the end of year 15, beyond which no safeguards will apply.
Papacosta added that SIA applauds Prime Minister Anthony Albanese, Trade Minister Don Farrell and the negotiation team for their hard work.
“The Australian seafood industry is committed to working closely with the Australian and UK governments to ensure that the new agreement is implemented smoothly and effectively. With its world-class seafood products and our commitment to sustainability, the Australian seafood industry is well-positioned to take advantage of the opportunities provided by this new agreement and to continue to grow and thrive in the years ahead,” said Papacosta.
McDonald said, “We congratulate the Prime Ministers on finalising this significant milestone in Australia-UK relations and express our gratitude to all who have worked diligently to realise such an outcome.”
The agreement also provides a framework for professional bodies to streamline licensing processes, which will allow greater movement of qualified professionals between the two countries.
One the FTA has been in place for two years, Australians will be able to apply for a working holiday in the UK up to the age of 35 and can stay for a maximum of three years. Currently it is 30 and a stay of two years.
And there will be digital trade rules that provide greater certainty for Australian businesses looking to grow their digital footprint in the UK.
The government said the deal included strong commitments on the environment, including climate change, and labour and preserved the right of the Australian government to regulate in the public interest, including for the environment, education, and health.
There is no Investor-State Dispute Settlement mechanism.
For A-UKFTA tariff outcomes, see the FTA Portal.
For further information on the A-UKFTA, see the DFAT website.
