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Australia, UK agree on broad terms of trade deal
15 Jun '21
2 min read
Pic: Shutterstock
Prime Ministers Scott Morrison and Boris Johnson have agreed in principle for a free trade deal between Australia and the United Kingdom. Both met overnight in London to resolve outstanding issues in the long-running negotiations. A formal announcement would be made today. It is set to be the United Kingdom’s first major post-Brexit trade deal.
It is being widely perceived as an important step towards the United Kingdom joining a wider Asia-Pacific free trade agreement.
The British government says membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) could offer British farmers tremendous opportunities.
Australian agriculture minister David Littleproud said both governments were still "nutting out the details" of the deal. Disagreement existed over Australian agricultural exports and requirements for British backpackers to work in Australia, according to media reports from both the countries.
Australian trade minister Daniel Thomas Tehan, who recently travelled to London to hold preliminary trade talks with his UK counterpart Liz Truss—with the pair agreeing there would be an in-principle deal by June—said the agreement was a "win for jobs, businesses, free trade and highlights what two liberal democracies can achieve while working together".
"It will only be done if it's a good deal for Australia, and crucially in that sense is making sure that our farmers and agriculture sector get the type of export access, along with other small businesses that we expect in a trade agreement to truly open up markets and flow between two nations," Australian finance minister Simon Birmingham—who oversaw initial negotiations as former trade minister—said.
Prior to entering the European common market in 1973, the United Kingdom was Australia's most lucrative trading market. In 2018, the former was the latter’s eighth-largest two-way trading partner, worth $26.9 billion.
UK farmers also have concerns there will be no meaningful safeguards in place to stop farmers being undercut by cheap imports. Farmers in Australia are allowed to use some hormone growth promoters, pesticides, and feed additives that are banned in the United Kingdom.
Scotland had raised worries about the farming industry being overwhelmed if the market was flooded with lower standard goods.
In 2019-20, trade in goods and services between both sides was worth at £20.1 billion.
It is being widely perceived as an important step towards the United Kingdom joining a wider Asia-Pacific free trade agreement.
The British government says membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) could offer British farmers tremendous opportunities.
Australian agriculture minister David Littleproud said both governments were still "nutting out the details" of the deal. Disagreement existed over Australian agricultural exports and requirements for British backpackers to work in Australia, according to media reports from both the countries.
Australian trade minister Daniel Thomas Tehan, who recently travelled to London to hold preliminary trade talks with his UK counterpart Liz Truss—with the pair agreeing there would be an in-principle deal by June—said the agreement was a "win for jobs, businesses, free trade and highlights what two liberal democracies can achieve while working together".
"It will only be done if it's a good deal for Australia, and crucially in that sense is making sure that our farmers and agriculture sector get the type of export access, along with other small businesses that we expect in a trade agreement to truly open up markets and flow between two nations," Australian finance minister Simon Birmingham—who oversaw initial negotiations as former trade minister—said.
Prior to entering the European common market in 1973, the United Kingdom was Australia's most lucrative trading market. In 2018, the former was the latter’s eighth-largest two-way trading partner, worth $26.9 billion.
UK farmers also have concerns there will be no meaningful safeguards in place to stop farmers being undercut by cheap imports. Farmers in Australia are allowed to use some hormone growth promoters, pesticides, and feed additives that are banned in the United Kingdom.
Scotland had raised worries about the farming industry being overwhelmed if the market was flooded with lower standard goods.
In 2019-20, trade in goods and services between both sides was worth at £20.1 billion.
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