Australia–United Kingdom Free Trade Agreement now signed
The Australia–United Kingdom Free Trade Agreement (A-UKFTA) was signed on 17 December 2021. Tying together the shared threads of history, and our commitment to open, rules-based trade, the A-UKFTA will deliver mutual benefits and create a closer and stronger economic future for us both.
The United Kingdom is Australia’s fifth largest trading partner. Once the A-UKFTA is in force, expected during the course of 2022, it will open up new commercial opportunities for Australian business and promote job creation. It will eliminate tariffs on trade in goods and remove red tape that slows trade down.
Building on our strong people-to-people links, the A-UKFTA will enhance mobility pathways for workers and young people who wish to work in the UK, while making it easier for Australian service companies and professionals to do business there. It will deepen our already strong investment ties with our second largest source of foreign investment.
Visit this website to find out how Austrade can help you discover growth opportunities under the new FTA.
Benefits for farmers: The A-UKFTA offers access to the UK market that Australian agricultural producers have not seen in generations.
A key negotiating objective of the A-UKFTA has been achieved with the agreement offering improved access for agricultural products in a market that had largely been closed off due to high tariffs on Australian farm exports since the UK joined the European
Union in the early 1970s.
The A-UKFTA will support farmers by eliminating tariffs and removing red tape that slows trade down. Australia exported around $724 million worth of agricultural goods to the UK in 2020, representing just 1.5 per cent of Australia’s total exports of these products.
• Immediate elimination of tariffs on goods such as wine, short and medium grain rice, honey, nuts, and olive oil.
• Immediate access to duty free transitional quotas for key agriculture products, including beef and sheep meat, sugar and dairy, with eventual tariff elimination.
• Immediate elimination of tariffs on $841 million of Australia’s dutiable exports to the UK.
• A reduction in costs and red tape by making it simpler for traders to prove the originating status of their goods.
• Faster customs clearance timeframes providing greater certainty to exporters.
• Transparent trade and investment rules so savings can be made on administrative costs when trading with the UK.
• Australia will ensure we can further support agriculture and agribusiness by outlining visa pathways to facilitate mobility for those involved in agricultural work.
• A range of commitments to ensure technical barriers to trade do not discriminate or create unnecessary obstacles.
Horticulture contributed $3.9 billion to Australia’s agricultural export income in 2020. High tariffs on key agricultural commodities hamper Australia’s market access to the UK.
Key A-UKFTA market access outcomes are:
• Immediate elimination of tariffs on most fruits and vegetables, including tariffs on almonds, macadamias, and other nuts; avocados, cherries (except sour cherries); dried fruits, citrus fruits, carrots, and table grapes.
• Elimination of tariffs on other key interests over three years, including tariffs on apricots, nectarines, peaches, strawberries, asparagus, beans, tomatoes, apples (except cider apples) and pears (except perry pears).
• Elimination of tariffs over 7 years for the remaining products.
Visit this website to find out more.
Watch these two short videos of Austrade UK Trade Commissioners outlining some of the key trade and investment opportunities under the A-UK FTA: