A new Free Trade Agreement (FTA) with the UK will deliver more Australian jobs and business opportunities for exporters.
Both Australia and the UK will benefit by gaining greater access to a range of high quality products made in the other country as well as greater access for businesses and workers, all of which will create additional employment and drive economic growth.
Tariffs on 99% of Australian exports to the UK will be phased out over a decade, providing a significant boost to the Australian agriculture industry. Many Australian products will enter the UK duty free once the FTA enters into force.
The key industries in the FTA include:
Tariffs on beef and lamb will be gradually removed over the course of 10 years. During the transition period, exporters will receive large quotas for tariff-free shipments into the UK. For example, beef farmers will have immediate access to a duty-free quota of 35,000 tonnes, gradually rising to 110,000 tonnes over a decade. This will provide a significant boost to the industry as Australia regularly meets the current tariff-free quota of 19,186 tonnes.
Tariffs on sugar will be fully abolished in eight years. Like producers in the meat industry, Australian sugar producers will be able to export goods tariff-free as soon as the agreement comes into effect, with quotas starting at 80,000 tonnes and gradually increasing over time.
Australian dairy exporters will be able to ship goods to the UK tariff-free in five years, with immediate access to a duty-free quota for cheese of 24,000 tonnes, rising in instalments to 48,000 tonnes over five years. Non-cheese dairy products will also have access to tariff-free exports of 20,000 tonnes per year.
Tariffs on Australian wines entering the UK will also be completely removed, with a duty-free arrangement starting as soon as the agreement enters into force. With wine being Australia’s second largest export to the UK, this will benefit both Australian producers and UK consumers.
Many Australian industries will have access to a larger international talent pool, with the trade deal expanding the working holiday visa program to include adults aged up to 35. In the past, UK citizens could secure a visa up to the age of 30.
The change, however, will not benefit the farming industry, as any requirement for UK visa holders to work on farms will likely be removed.
Professionals are expected to benefit from greater recognition of qualifications between the two countries, making it easier for some skilled professionals to enter the Australian labour market and vice versa.
Professionals will benefit from provisions to support mutual recognition of qualifications and greater certainty for skilled professionals enter either the UK or Australian labour market.
If your business operates a supplier or customer to importers or exporters, or conduct importing or exporting yourself, you are likely to be impacted.
If you have any questions regarding the Free Trade Agreement or how it may affect your business, please give us a call on 03 5443 0344 or email email@example.com