UK and Australia Ink Landmark Trade Deal
The United Kingdom and Australia inked a massive trade deal, marking the first one negotiated completely by the U.K. itself since its departure from the European Union, the Department for International Trade announced. The deal, officially signed by International Trade Secretary Anne-Marie Trevelyan at a Dec. 16 ceremony, is expected to boost bilateral trade by over $13.3 billion, create new work and travel opportunities for citizens of both nations, and eliminate tariffs.
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Laying out the expected benefits of the deal, the DIT said the landmark agreement will give "UK firms guaranteed access to bid for an additional £10 billion worth of Australian public sector contracts per year," remove visa conditions for young professionals to work and travel in Australia for up to three years at a time, give access to U.K. service suppliers to work in Australia without being subject to the country's "changing skilled occupation list," and remove tariffs on all U.K. exports. The removed safeguard measures will be especially important for goods such as Scotch whiskey, cars and apparel on the U.K. side, and surfboards, Jacob's Creek and Hardys wines and Tim Tams on the Aussie side, the DIT said.
"Our UK-Australia trade deal is a landmark moment in the historic and vital relationship between our two Commonwealth nations," Trevelyan said. "This agreement is tailored to the UK’s strengths, and delivers for businesses, families, and consumers in every part of the UK – helping us to level up. We will continue to work together in addressing shared challenges in global trade, climate change and technological changes in the years ahead. Today we demonstrate what the UK can achieve as an agile, independent sovereign trading nation."
Tariffs will also be dropped on 99% of Australian goods shipped to Britain, valued at over $6.6 billion, Australian Trade Minister Dan Tehan said in a statement. To start, though, the U.K. will set a tariff-free quota for Australian beef of 35,000 tonnes that will be dropped after 10 years, leading to pure tariff-free trade. "This is the most comprehensive and ambitious free trade agreement that Australia has concluded, other than with New Zealand," Tehan said. "It demonstrates our countries’ commitment to free trade as a driver of economic growth and stronger bilateral relationships."