Australia and the United Kingdom sign a $ 13.3 billion deal on the coronavirus pandemic

The abolition of tariffs on Australian wine and beef is expected to help exporters affected by Chinese trade sanctions.

The UK and Australia signed a free trade agreement on Thursday, which is expected to boost bilateral trade of more than £ 10bn ($ 13.3bn) by removing tariffs, opening up sectors such as agriculture and allowing more free movement of professionals in the services sector.

It will help eliminate tariffs on Australian wine and a tariff-free quota for beef Exporters subject to penalties in China Focus on sales in the UK. Cars, whiskey, pastries and cosmetics in the UK will cut tariffs in Australia.

“This is Australia’s broadest and most ambitious free trade agreement, with the exception of New Zealand,” said Australian Prime Minister Scott Morrison and Trade Minister Dan Tehan in a joint statement.

China is Australia’s largest trading partner, but a diplomatic dispute over sanctions on Australian agricultural stockpile last year. This led the Morrison government to urge exporters to reduce their confidence in China.

The agreement with the UK will “create new opportunities for workers, young people and businesses and further strengthen the special relationship between our two countries,” Morrison said.

Tariffs of 99 per cent of Australian goods exported to the UK will be deducted, worth A $ 9.2 billion ($ 6.6 billion), and A $ 43 million ($ 31 million) will be deducted from taxes on Australian wine.

An initial tariff-free quota for 35,000 tonnes of Australian beef will lead to the abolition of tariffs within 10 years.

Businesses in the UK will be encouraged to invest in Australia, and a work holiday program will be extended to Australians under the age of 35 to work in the UK for three years.

‘Seismic opportunities’

An analysis conducted by the UK and independently analyzed said the economy would boost 2.3 billion pounds ($ 3 billion) a year and by 10.35 billion pounds ($ 13.9 billion) unlock imports and exports.

Total trade in goods and services between the UK and Australia was worth £ 14.5 billion ($ 19.3 billion) in June 2021, making Australia the 21st largest trading partner in the UK and accounting for 1.2 per cent of total UK trade.

The deal adds a small chunk to the UK’s $ 3 trillion economy, but it is the first zero-negotiated trade agreement since London left the European Union.

“This is just the beginning as we take advantage of the seismic opportunities that lie ahead and await us globally,” said Anne-Marie Trevelyan, the UK’s Minister of Commerce.

The UK sees the deal as an important step towards becoming a member of a trading bloc in the Pacific Ocean that would move its economic center away from Europe and a growing economy in demand for professional services.

Two nations He created the Indo-Pacific Security Pact, AUKUS, in September with the United States to share nuclear defense technology with Australia including defense technology.

When trade agreement in principle It was announced earlier this year that farmers in the UK were competing with large-scale Australian meat producers who could produce their domestic products. The UK says the deal has guarantees to protect farmers.

In addition to beef, Australian sugar and mutton will also benefit from the initial tariff-free quotas, and all tariffs will be abolished within eight to 10 years, respectively.

The final terms of the agreement will be presented to the UK Parliament for consideration. Legislators could theoretically block a treaty indefinitely, but that power has never been tested, according to an information report from the House of Commons Library.