The Department of Foreign Affairs and Trade (DFAT) and the Department of Agriculture, Fisheries and Forestry (DAFF) have both issued advice notices this week outlining the new trade opportunities available to Australian exporters under the Australia-United Kingdom Free Trade Agreement (A-UKFTA). Some of the barriers are being phased out gradually over a number of years.
SEAFOOD
Most seafood consumed in the UK is imported. Prior to Brexit, when the UK was a member of the EU, relatively high tariffs made Australian seafood products more expensive to import, reducing their competitiveness in the UK market. Countries that already had trade agreements, including the EU, Norway and Iceland were its primary suppliers.
A-UKFTA eliminated tariffs on many Australian seafood products on its implementation, including finfish and rock lobster. Remaining seafood tariffs will be phased out and eliminated completely by 01 January 2026.
The agreement provides Australian seafood exporters with improved access to the UK’s seafood market, worth US$4.5 billion (approximately A$6.1 billion) in 2021 (source: UN Comtrade 2023).
With the complete removal of tariffs on fish products (fresh or chilled, frozen, fillet, dried or salted), Australia now has same tariff rate access as the EU.
The Department of Foreign Affairs and Trade has guidance material and a business guide about the A-UKFTA. Austrade also has more information it: Doing business in United Kingdom.
DAIRY PRODUCT EXPORTS
The A-UKFTA eliminates tariffs on Australian dairy exports to the UK over 6 years. It provides immediate access to duty-free quotas during the transition period. In 2028 (year 6) all Australian dairy exports will enter the UK tariff free.
This will provide more opportunities for Australian exporters in the UK’s US$3.8 billion dairy import market. In-quota exports from Australia will no longer have a tariff disadvantage relative to dairy products from the EU and Switzerland. Australia will also have similar access to other major dairy exporters, such as New Zealand and Canada, and better access than producers in the United States.
You can read a full analysis on DAFF’s website: Australian dairy product exports.
SUGAR
Under the A-UKFTA, tariffs on Australian sugar exports into the UK will be fully eliminated on 01 January 2031. Annual duty-free quotas during the tariff elimination period will also improve market access for Australian exporters.
The first full quota year (100,000 tonnes) starts in October 2024. Australia’s tariff-free quota will increase by 20,000 tonnes each year before reaching 220,000 in 2030. Tariffs and the quota on Australian sugar exports will be eliminated from 2031 onwards. These changes will immediately lift the commercial viability of the UK as a market for Australian sugar exports.
You can read a full analysis on DAFF’s website: Australian sugar exports .
Read our related article on the implementation of the A-UKFTA: Full Details on UK-FTA as it Activates.
For more information about international trade and shipping – whether with the UK or any other point on the globe – contact us here at Colless Young. As licensed Customs Brokers and International Freight Forwarders we offer correct, professional advice on all your import and export trade transactions. We are based in Brisbane and provide a complete range of logistics services, for both airfreight and sea cargo through all Australian ports and airports.
