Aus UK FTA 2023 highlights in of the new free trade agreement

The Australian UK Free Trade Agreement (Aus UK FTA) starts on 31 May 2023 and gives our exporters a competitive edge when entering the UK market. The UK is one of our most important trading partners, sharing heritage, common values and a significant amount of history.

In 2022 our two-way goods trade with the UK was $10 billion, with our major exports to the UK being lead, alcohol and analytical equipment. We have negotiated improved ability to sell our exports with the removal of tariffs, quotas and other barriers under the Free Trade Agreement.

Nearly all tariffs on Australian goods shipped to the UK, including commodities from the agrarian industry, will be removed. After five years all UK imports will enter Australia duty free. This will help reduce the cost of living for households and input costs for Australian business.

For both countries, the Aus UK FTA will build on the existing strengths in two-way trade and investment by:

• Strengthening trade diversification
• Increasing economic recovery
• Creating new opportunities and jobs

Aus UK FTA tariff quote removals

Around $200 million a year will be saved once UK import tariffs are abolished. This includes exports of Australian:

• Wines and cosmetic products
• Auto parts and electrical equipment
• Honey, nuts and olive oil
• Most seafoods, fruits, vegetables and processed foods.
• Rice – both short and medium grain

Aus UK FTA free trade agreement 2023 immediate tariff removals

Tariff quotas in Aus UK FTA to be removed

In respect of some agrarian commodities, Australia will benefit from increased limits on particular goods. The agreement has these tariff limits being eliminated completely within eight to ten years. These commodities include:

• Beef
• Dairy products
• Lamb and mutton
• Sugar

Aus UK FTA free trade agreement 2023 tariff quotas removed

Trade improvements from the Aus UK FTA

Australia has successfully negotiated with the UK new commitments that reduce barriers in digital trade and help Australians engage and benefit from the rapidly growing digital economy. These include new, additional digital protections and contracts for consumers. There is also an acceptance of new digital mechanisms used for trade processes. Examples of these are electronic trust services, digital signatures and electronic signatures. These trade improvements will create new opportunities and jobs, and include features such as:

• Improved digital trade
• Cross-border data sharing
• Localisation commitments
• Electronic contracts

Both countries will have greater access to the financial services market. Further, they will be able to bid for a wide range of government goods, services and construction contracts. For example, legal services in one country will be able to bid on government contracts for legal services in the other.

The UK has promised in the Aus-UK FTA that future opportunities for Australia will be on par, if it provides enhanced market ingress to other countries. These arrangements encompass agreements ensuring regulatory openness throughout all areas, ensuring collaborative and cooperative clarity and transparency throughout all sectors and in all areas of governance.

Flow-on from Comprehensive Progressive Agreement Trans-Pacific Partnership

Many of the terms in the Aus-UK FTA correspond with those of the Comprehensive and Progressive Agreement on Trans-Pacific Partnership (CPTPP). Given that the UK and Australia are both parties to the CPTPP, some advantages, such as country source criteria for products, may increase significantly. CPTPP sanctions semi-finished products being deemed regional throughout all countries party to the Agreement. Thus Australian and UK parts extant within finished product and being sent to a fellow-CPTPP affiliate that is compliant with rules specifically relative to that product, can be eligible for comparative market advantage.

Aus UK FTA free trade agreement 2023 improvements to trade

Immigration changes between Australia and UK

The Australia and UK Free Trade Agreement means people from each of the two countries can enjoy working holidays, benefiting from wider work and travel options. The Agreement makes visas, higher age limits and stay extensions easier to obtain. These changes enable more greater latitude and cultural reciprocity for young people hoping to do temporary work while getting to know a new country. Under the new arrangements the following will apply for UK passport holders:

• Working Holiday visa for people between of 18 and 35 years old
• Extension of working holiday arrangements of up to three years
• Revised visa arrangements will facilitate inter-enterprise relocations
• Visa route to Australia for trailblazing developers from the UK
• Reciprocal remuneration options for resales relating to appropriately qualified talent

Included in the agreement is the mutual recognition of professional qualifications. This greatly improves the ability of immigrants to secure skilled professional jobs when entering their new country’s labour market.

Aus UK FTA free trade agreement 2023 improvements to immigration

Need help importing or exporting to the UK?

If you are looking for a freight forwarder that knows how to maximise your position when importing or exporting to the UK, contact Freight Forwarder Quote Online Australia. We have extensive knowledge of the Aus UK FTA free trade agreement 2023 and can help develop the most cost-effective solution for your situation. Try our online instant sea freight quote tool and get free and unlimited quotes.

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