The UK and Australia have agreed a new trade partnership that will eliminate tariffs on all UK goods and encourage greater economic collaboration between the two nations.
The deal is significant for the UK Government, as it is the first major trade agreement of its kind negotiated from scratch since the country left the EU.
The key elements of the latest deal were agreed by Prime Minister Boris Johnson and Australian Prime Minister Scott Morrison at a meeting in Downing Street this month, with a full final Agreement in Principle due to be published in full soon.
Under the terms of the new Free Trade Agreement, iconic British products like cars, Scotch whisky, biscuits and ceramics will be cheaper to sell into Australia, boosting UK industries that employ 3.5 million people across the country.
It will also help many other sectors boosting the UK-Australia trade relationship, which was worth £13.9 billion last year.
The new agreement will also help to create a future Clean Tech Partnership and allow British people under the age of 35 to travel to Australia more freely and work when they arrive.
Announcing the new deal, The Prime Minister Boris Johnson said: “Today marks a new dawn in the UK’s relationship with Australia, underpinned by our shared history and common values.
“Our new free-trade agreement opens fantastic opportunities for British businesses and consumers, as well as young people wanting the chance to work and live on the other side of the world.
“This is global Britain at its best – looking outwards and striking deals that deepen our alliances and help ensure every part of the country builds back better from the pandemic.”
As well as offering direct trade benefits to UK businesses, the UK Government is hopeful that the latest agreement will pave the way for the country to join the Trans-Pacific Partnership – a £9 trillion free trade area home to some of the biggest consumer markets.
Parliament will still need to scrutinise the agreement in detail once the text is published, along with an impact assessment and explanatory memorandum, but the deal is likely to proceed without any major obstacles.
National Chair of the Federation of Small Businesses, Mike Cherry, said: “A trade deal with Australia will come as great news for many of our members who have long been exporting there as well as those who are hoping to expand their trade ambitions.
“As we look beyond the pandemic and enjoy the benefits of post-Brexit growth, deals like this will reap vast rewards to small firms right across the UK.”
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