AUSTRALIA-UNITED KINGDOM FREE TRADE AGREEMENT

The Australia-UK Free Trade Agreement (A-UK FTA) is expected to start 31 May 2023. This will remove duty rates on over 99% of Australian goods exported to the UK.

For both countries, the A-UK FTA will:

• strengthen diversification and economic recovery
• create new export opportunities and jobs

With the commencement of this comprehensive agreement, there will be no tariffs on over 99 per cent of Australian goods exports to the UK, opening new export opportunities. This includes Australian exports of wine, short- and medium-grain rice, honey, nuts, and manufactured products such as auto parts, electrical equipment, and cosmetic products.

For some agricultural products like beef, sheep meat, dairy and sugar, Australia will have access to expanding tariff quota volumes – within 10 years these tariff quotas will be eliminated completely.

Savings of approximately $200 million a year will be made as tariffs on imports from the UK are eliminated. After five years, all UK imports will enter Australia duty free, helping ease cost-of-living pressures for households and input costs for Australian business.

Highlights of the A-UK FTA outcomes of the agreement include,
  

Removing tariffs on:

• Australian wine
• short and medium-grain rice
• honey
• nuts
• olive oil
• most seafood
• most fruits and vegetables
• most processed foods 

Duty-free transitional quotas and removal of tariffs after 8 to 10 years on:

• beef 
• sheep meat 
• sugar and dairy. 
• improved digital trade, including new rules around free flow of data, localisation commitments, and electronic contracts 
• increased market access for financial services 
• guaranteed right to bid for a wide range of UK government goods, services, and construction contracts
• extension of the working holiday arrangement to 3 years for people aged 18 to 35 working in Australia and the UK 
• new visa provisions to enable intra-corporate transfers and a new visa pathway to Australia for innovators from the UK
• Two-way royalty arrangements for eligible artist resales 

Should you have any further questions or require more information, please do not hesitate to contact a member of our brokerage team for guidance.