The United Kingdom and Australia on Thursday signed a free trade deal projected to eventually boost bilateral trade by more than 10 billion pounds ($13.3bn), eliminating tariffs, opening up sectors like agriculture and allowing freer movement for service-sector professionals.
The elimination of tariffs on Australian wine, and a tariff-free quota for beef will help exporters hit by sanctions in China to pivot to sales in the UK. British cars, whiskey, confectionery and cosmetics will see tariffs phased out in Australia.
“This is the most comprehensive and ambitious free trade agreement that Australia has concluded, other than with New Zealand,” Australia’s Prime Minister Scott Morrison and Trade Minister Dan Tehan said in a joint statement.
China is Australia’s largest trading partner, but a diplomatic dispute led to Beijing imposing sanctions on a raft of Australian agricultural products last year. This prompted the Morrison government to urge exporters to reduce their reliance on China.
The agreement with the UK would “create new opportunities for workers, young people and businesses and further strengthen the special relationship between our two countries”, Morrison said.
Tariffs will be eliminated on 99 percent of Australian goods exported to the UK, valued at 9.2 billion Australian dollars ($6.60bn), with 43 million Australian dollars ($31m) in duties removed from Australian wine.
An initial tariff-free quota for Australian beef of 35,000 tonnes will lead to the elimination of tariffs after 10 years.
