Australia–United Kingdom Free Trade Agreement

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Australia - United Kingdom FTA
UK - Australia FTA.png
  Australia
  United Kingdom (UK)
TypeTrade agreement
ContextTrade between the UK and Australia
Drafted15 June 2021
Signed17 December 2021
LocationVirtually in London, UK and Adelaide, Australia
EffectiveNot in force
ConditionRatification by both Houses of the Parliament of Australia and the UK Department for International Trade
Negotiators
Parties
LanguageEnglish

The Australia–United Kingdom free trade agreement is a free trade agreement between the United Kingdom and Australia which was signed on the 17th of December 2021.[1] The broad terms of the agreement were agreed on 14 June 2021, following almost a year of negotiations.[2]

Background[]

The United Kingdom voted to leave the European Union in the 2016 United Kingdom European Union membership referendum by 51.9% of votes in favour to 48.1% of votes against, in a decision referred to as Brexit.[3] The United Kingdom subsequently left the European Union on 31 January 2020.[4]

Polling conducted by YouGov from 7–8 September 2016, found that Australia was the country that Leave voters most wanted to sign a free trade agreement with, with 47% ranking it as the top priority country.[5]

In 2020, trade between the countries was valued at £13.9 billion.[6] Australia accounts for 0.4% of British exports and 1.3% of imports.[7]

Negotiations[]

The United Kingdom and Australia started negotiations for a free trade deal on 17 June 2020.[8][9] The broad terms of the agreement were agreed on 14 June 2021, following almost a year of negotiations.[10]

On 15 June 2020, the Australian Government released its negotiating position.[11] Two days later, on 17 June 2020, the UK Government also released its negotiation objectives, outlining what it would like to achieve in a free trade agreement.[12]

Farmers in the United Kingdom expressed concern that prices would be undercut by cheaper Australian imports.[13][14] Australian beef production sits around 2.3 million tonnes of beef per annum, compared to 900,000 tonnes in the United Kingdom.[15] Australian sheep meat production is around 700,000 tonnes, which is two-and-a-half times the output in the United Kingdom.[15] The British government sought a 15-year cap on tariff-free imports to address these concerns.[16] Polling conducted by Opinium Research found that 61% of Britons prioritised protecting British farmers over signing new trade agreements, with 20% prioritising signing new trade deals.[17]

On 14 June 2021, the agreement was reached over dinner between Boris Johnson and Scott Morrison.[18] On 15 June 2021, the British government announced that an agreement had been reached in principle.[19]

Provisions[]

Under the terms of the agreement in principle, Australia would relax certain rules around working holiday visas for Britons under the age of 35.[20][21]

Areas Covered in the FTA and Contention Points[]

  • Trade in Goods:
  • Sanitary and Phytosanitary Measures (SPS):
  • Customs and Trade Facilitation
  • Rules of Origin
  • Technical Barriers to Trade (TBT)
  • Good Regulatory Practices
  • Transparency, Publication, and Administrative Measures
  • Trade in Services, Including Telecommunications and Financial Services
  • Mobility
  • Digital Trade in Goods and Services and Cross-Border Data Flows
  • Investment
  • Intellectual Property
  • Procedural Fairness for Pharmaceuticals and Medical Devices
  • State-Owned and Controlled Enterprises (SOEs)
  • Subsidies
  • Competition Policy
  • Labor
  • Environment
  • Anti-corruption
  • Trade Remedies
  • Settlement
  • General Provisions

[22]

Significance[]

On 15 June 2021, the British Secretary of State for International Trade and President of the Board of Trade, Liz Truss, said that the agreement "paved the way" for the United Kingdom to become a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).[23] The United Kingdom formally applied to join the CPTPPP in February 2021 and began membership negotiations on 2 June 2021.[24][25]

British government estimates suggest that an agreement would grow the British economy by £500 million over the course of 15 years, equivalent to a 0.02% increase in GDP.[26]

The Australian National Farmers' Federation welcomed the deal as an opportunity for increased Australian agricultural exports to the United Kingdom.[27]

See also[]

References[]

  1. ^ "Australia signs UK free trade deal, scrapping import tariffs and opening British jobs market". ABC News Australia. 17 December 2021. Retrieved 19 December 2021.
  2. ^ "Australia trade deal will not hit UK farmers, says Liz Truss". BBC News. 16 June 2021. Archived from the original on 16 June 2021. Retrieved 16 June 2021.
  3. ^ Gross, Jenny (24 June 2016). "Britain Delivers Stunning Rejection to EU". The Wall Street Journal. London, England. Archived from the original on 10 April 2021. Retrieved 15 June 2021.
  4. ^ Colchester, Max (31 January 2021). "Brexit Is Done: The U.K. Has Left the European Union". The Wall Street Journal. London, England. Archived from the original on 28 April 2021. Retrieved 15 June 2021.
  5. ^ Smith, Matthew (17 September 2016). "Which countries should we focus on for trade deals?". YouGov. Archived from the original on 25 January 2021. Retrieved 15 June 2021.
  6. ^ Stone, Jon (15 June 2021). "Brexit: Boris Johnson says Australia trade deal will bring 'fantastic opportunities' for UK". The Independent. Archived from the original on 15 June 2021. Retrieved 15 June 2021.
  7. ^ Albert, Eric (25 May 2021). "L'accord de libre-échange entre Londres et Canberra permet de mesurer les extrêmes difficultés qui attendent le Royaume-Uni avec le Brexit" [The free trade agreement between London and Canberra allows us to measure the extreme difficulties which await the United Kingdom with Brexit]. Le Monde. Archived from the original on 11 June 2021. Retrieved 16 June 2021.
  8. ^ Hurst, Daniel; Graham-McLay, Charlotte (June 17, 2020). "UK begins talks with Australia and New Zealand on free trade deal for post-Brexit era". The Guardian. Archived from the original on May 24, 2021.
  9. ^ Barns-Graham, William (June 17, 2020). "UK starts talks with 'old friends' Australia and New Zealand for trade deals". Institute for Exports and International Trade. Archived from the original on June 22, 2020.
  10. ^ "Australia trade deal will not hit UK farmers, says Liz Truss". BBC News. 16 June 2021. Archived from the original on 16 June 2021. Retrieved 16 June 2021.
  11. ^ "Australia-UK FTA objectives fact sheet". Department of Foreign Affairs and Trade. 15 June 2020.
  12. ^ "UK's approach to negotiating a free trade agreement with Australia". GOV.UK. Department for International Trade. June 17, 2020. Archived from the original on June 19, 2020.
  13. ^ Marshall, Claire (2 June 2021). "Farmers' opposition to UK-Australia trade deal grows". BBC News. Archived from the original on 5 June 2021. Retrieved 15 June 2021.
  14. ^ Partridge, Joanna (18 May 2021). "Farmers warn post-Brexit trade deal with Australia could hit UK agriculture". The Guardian. Archived from the original on 2 June 2021. Retrieved 15 June 2021.
  15. ^ a b Partridge, Joanna (22 May 2021). "Put out to pasture? Britain's farmers fear surge of imports from Australia". The Observer. Archived from the original on 10 June 2021. Retrieved 15 June 2021.
  16. ^ Walker, Peter; Harvey, Fiona; O'Carroll, Lisa (15 June 2021). "Farmers raise concerns as Boris Johnson hails 'historic' UK-Australia trade deal". The Guardian. Archived from the original on 15 June 2021. Retrieved 15 June 2021.
  17. ^ "Poll reveals strong majority prioritise protecting farmers over new trade deals". Farming Life. JPIMedia. 2 June 2021. Archived from the original on 4 June 2021. Retrieved 15 June 2021.
  18. ^ "UK and Australia in first post-Brexit trade deal". BBC News. 15 June 2021. Archived from the original on 15 June 2021. Retrieved 15 June 2021.
  19. ^ Wright, Oliver; Zeffman, Henry (15 June 2021). "Boris Johnson announces 'new dawn' trade deal with Australia". The Times. Archived from the original on 15 June 2021. Retrieved 15 June 2021.
  20. ^ Zeffman, Henry (15 June 2021). "Australia opens arms to young Britons in 'new dawn' trade deal". The Times. Archived from the original on 15 June 2021. Retrieved 15 June 2021.
  21. ^ O'Carroll, Lisa (15 June 2021). "UK-Australia trade deal: what does it mean?". The Guardian. Archived from the original on 15 June 2021. Retrieved 15 June 2021.
  22. ^ "Australia-UK FTA negotiating aims and approach". Department of Foreign Affairs and Trade. Archived from the original on 2020-06-21.
  23. ^ Smyth, Jamie; Payne, Sebastian (15 June 2021). "UK and Australia agree post-Brexit trade deal". Financial Times. Archived from the original on 15 June 2021. Retrieved 15 June 2021.
  24. ^ James, William (1 February 2021). "UK makes formal request to join trans-Pacific trade deal". Reuters. Archived from the original on 17 February 2021. Retrieved 15 June 2021.
  25. ^ James, William; Leussink, Daniel (2 June 2021). "UK gets green light to start talks on joining pacific trade deal". Reuters. Archived from the original on 10 June 2021. Retrieved 15 June 2021.
  26. ^ Inman, Phillip (22 May 2021). "Truss's naivety on trade with Australia could leave the UK exposed". The Observer. Archived from the original on 11 June 2021. Retrieved 15 June 2021.
  27. ^ Murphy, Katherine (15 June 2021). "Australian producers to gradually gain tariff-free access to British markets under free trade deal". The Guardian. Archived from the original on 15 June 2021. Retrieved 15 June 2021.

External links[]

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