On 15 June 2021, Australian Prime Minister Morrison and UK Prime Minister Johnson made an announcement on core elements of the Australia – United Kingdom Free Trade Agreement negotiations. The UK was Australia’s fifth largest trading partner in 2019-20, with two-way trade in goods and services worth $36.7 billion. What changes can we expect as the FTA phases in?
For Importers – Â
Australians will have the benefit of cheaper Scottish whiskey when the 5% tariff comes off imports. Additionally, Northern Ireland exports a number of machines and manufactured goods that are used by Australian miners. Those will enter the Australian market tariff-free.
Australian consumers will also enjoy immediate zero tariffs on products like cheese, chocolate and cars. British passenger vehicles, including SUVs, are currently hit with a 5% customs duty when they are exported to Australia – that tariff will go once the agreement comes into force.
The UK is talking up an Australian concession allowing British companies to bid for Australian government contracts, saying the FTA will create new opportunities for British firms in our public transport infrastructure programs.
For Exporters –
Tariffs in the UK will be wiped to zero on billions of dollars’ worth of our exports, including agricultural produce and car parts, making it easier for our products to hit their shelves.
The UK will liberalise Australian imports of beef, lamb, sugar and dairy products, increasing their tariff-free threshold and tapering tariffs over time. This will give Australian farmers fairer access to the UK market in competition with the EU and will give British consumers the choice of buying high-quality, well-priced Australian products.
The timing of the deal is driven by the UK’s post-Brexit desperation to sign one-on-one agreements and the greater prize of being part of the 11-nation Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) including Japan, Australia, Canada, New Zealand, Vietnam, Singapore, Malaysia, Brunei, Mexico, Chile and Peru which the UK has applied to join.
Colless Young offers you correct, professional advice on all matters related to international shipping and trade. Based in Brisbane, we provide a complete range of logistics services, both air and sea cargo, through all Australian ports and airports. As licensed Customs Brokers and Freight Forwarders, Colless Young handles import clearance through Customs and quarantine, exports, trucking, warehousing and fumigation treatment.
UK trade agreements
Dark Green = Agreements currently in effect
Light Green = Agreement being negotiated
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