UK and Australia agree on first post-Brexit free trade agreement | International Trade News
[ad_1]
British Prime Minister Boris Johnson has said the deal has a “new dawn” in relations between the UK and its former colony.
The United Kingdom and Australia announced a new trade agreement on Tuesday, the first agreement the UK has negotiated from scratch since it left the European Union.
Britain’s Prime Minister Boris Johnson said the pact, which would eliminate risks and administrative formalities, was “a new dawn” in relations between the two countries.
The Johnson Conservative Party government has seen the agreement as an important element of its post-Brexit strategy to shift the country’s economic center from Europe and seek new opportunities in high-growth Indo-Pacific countries.
Earlier agreements with other countries, including Japan, were built on agreements between 27-member blocs.
Australian Prime Minister Scott Morrison and Johnson overcame difficult points in talks following the G7 meetings in the UK, and Morrison attended as a guest.
The UK has said the deal will make it cheaper to sell products such as cars, Scotch whiskey, biscuits and pottery to Australia, a former British colony.
In addition, UK citizens under the age of 35 can travel and work more freely in Australia.
On the other hand, the agreement will eliminate tariffs on Australian goods such as wine, swimwear and pastries imported into the UK.
“Today is a new dawn in the UK’s relationship with Australia, based on our shared history and common values,” Johnson said in a statement.
“This is the best in Britain, looking outwards and the agreements are striking, deepening our alliances and helping to better rebuild all parts of the country from the pandemic.”
Foreign Minister Dominic Raab has tweeted that the agreement is an “important step” in its efforts to unite with a free trade area in the Indo-Pacific region – a Comprehensive and Progressive Agreement on Pacific Cooperation.
Congratulations @trussliz. Excellent for getting a win-win FTA with our Aussie friends, which also provides an important step for CPTPP – both of which open up tremendous opportunities in the Indo-Pacific. #GlobalBritain https://t.co/nwjt4KS86G
– Dominic Raab (@DominicRaab) June 15, 2021
The United Kingdom is Australia’s eighth largest trading partner and Australia the 20th largest in the United Kingdom, valued at A $ 26,900 billion ($ 20.7 billion) in both directions.
Before the United Kingdom entered the mainstream European market in 1973, it was the most profitable trading market in Australia.
‘New opportunities’
Although no further details about the deal have been revealed, some official estimates suggest that the deal could add 500 million pounds ($ 705.7 million) to long-term UK economic output – a fraction of a trillion pounds ($ 2.8 trillion) for the economy.
British farmers will look into the deal as they fear they will be forced to leave the business if the deal removes tariffs on Australian lamb and beef imports.
The UK has said it will protect British farmers with a tariff-free import limit for 15 years, using tariff rate quotas and other protections.
Australian Trade Minister David Littleproud told 4BC Radio that the deal was “a win-win for Australian agriculture”.
However, the Australian economy is already focused on Asia.
“This free trade agreement is about symbolism, rather than tangible material benefits,” said Ben Wellings, a senior professor of politics and international relations at Monash University.
[ad_2]
Source link