The Australian Prime Minister Scott Morrison and British Prime Minister Boris Johnson have announced that they have agreed a Free Trade Agreement “in principle” between the two countries. The FTA is the first the UK has negotiated from scratch following Brexit and reaffirms the trusted and close relationship between Australia and the UK.
In a shared statement, Prime Minister Johnson remarked: “Today marks a new dawn in the UK’s relationship with Australia, underpinned by our shared history and common values.”
The Agreement “in principle” is due to be released in the coming days and is a milestone in almost five years of discussion between the Australian and British Governments as well as the business community following Brexit.
The key benefits (for UK-based companies) of the FTA include:
- Tariff-Free Trade for all British Goods
The deal will remove tariffs on £4.3 billion of British exports with all tariffs eliminated within 5 years and tariffs on cars, whisky and the UK’s main exports eliminated immediately.
- Extended Mobility Visas
British citizens under the age of 35 will be able to travel and work in the other country for up to three years. Highly skilled professionals will now be able to work in Australia temporarily.
- Innovation and Digital Provisions
A world-first innovation chapter which will facilitate the free flow of data with no data localisation required.
- Mutual recognition of some qualifications
The FTA will facilitate the mutual recognition of some professions including lawyers, engineers, architects and other professionals.
- Enhanced Access to Australian Government procurement contracts
British companies will be able to bid for additional Australian Government contracts with the most substantial level of access Australia has ever granted in a free trade agreement.
- Accession to the CPTPP
The FTA paves the way for the UK to join the Trans-Pacific Partnership, one of the largest free trade areas in the world, of which Australia is a key member.
More to follow once the full text has been released!!
Kepdowrie Chambers has assisted hundreds of UK-based companies with their “homework” and due diligence into the Australian market, including setting up and expanding their businesses in Australia. In particular, we have noted that expressions of interest in the Australian market have grown steadily ever since the 2016 EU Referendum (and exponentially since Brexit), so please get in touch if you’d like to have a discussion about “Brexporting” to Australia. We’re here to make sure that the learning-curve is not a challenge and you can quickly get on with the more important task of winning new customers.