This month, the UK’s trade agreements with Australia and New Zealand will take effect – a development of great interest to all UK business owners.
These bilateral trade deals have been championed by Prime Minister, Rishi Sunak, who met with his Australian and New Zealand counterparts in London on Friday 5th May.
From May 31st, the deal ensures that all tariffs on goods exported from the UK will be eliminated by both Australia and New Zealand.
The deal will also make it easier for UK professionals to live and work in Australia and New Zealand.
The deal, which aims to drive economic growth and innovation across the country is the first negotiated from scratch for the UK since its departure from the European Union.
Australian Prime Minister Anthony Albanese is confident that the deal between the three nations is beneficial for all parties, despite Mr. Sunak previously expressing concern about potential impacts on the UK domestic farming sector.
Farming unions in the UK have echoed the Prime Minister’s worries, fearing that they could provide Australian and New Zealand producers of products like beef and lamb unrestricted access to our market.
Prior estimates by the UK Government suggest that the food and farming industries could face challenges because of these trade agreements.
Mr. Sunak himself noted last year during the Conservative leadership contest that the deals seemed somewhat skewed against the UK.
However, Mr. Albanese, speaking to reporters in London, emphasised his positive relationship with Mr. Sunak and their mutual support for the agreement.
According to Mr. Albanese, the deal is “one of the best free trade agreements Australia has done.”
Meanwhile, Mr. Sunak stated in a press release that “these landmark deals squarely deliver on my priorities to drive economic growth, boost innovation and increase highly skilled jobs across the UK.”
Despite these assurances, some UK critics, including former Environment Secretary George Eustice, argue that the UK has conceded too much during negotiations with Australia and New Zealand without receiving adequate benefits in return.
It is worth noting that British service providers, which constitute 80 per cent of our economy, had comprehensive access to both Australian and New Zealand markets even before these trade deals.
However, the new agreements are anticipated to present fresh opportunities and potential challenges for businesses across the UK.
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