Australia-UK begin talks on landmark trade deal
Easier access to working visas are likely to be part of critical trade talks between the UK and Australia, with a deal also due to turbocharge Australian wine and lamb sales into the UK.
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Australia and Britain kickstart ambitious free trade deal talks today that may mean better working rights between the two countries, with Boris Johnson eyeing a political win to boost momentum for Brexit negotiations.
Easier access to working visas were likely to be part of the landmark trade talks, with a deal also due to turbocharge Australian wine and lamb sales into the UK.
Trade Minister Simon Birmingham told News Corp Australia that visas between the UK and Australia may be part of the talks.
“We start from a very strong position in terms of backpacking and working holidays that already exists and there are some ways we can build on that to make it even easier,” he said.
“There’s huge goodwill between Australia and Britain to do the deal. With the flow of people between the two countries already so large we have a strong understanding of one another.”
The Tier 5 Youth Mobility Visa was the most likely chip on the trade table, with some chance of Australians being able to use their two-year visa in two separate stints.
Any extension of the visa to three years would also have to come with a deal to increase the length of time Brits can spend in Australia.
Mr Birmingham said that he was “throwing the kitchen sink” at getting the trade deal done quickly.
The trade deal, which could be done by the end of the year, would add up to $2 billion in trade between the two countries.
Mr Birmingham made the announcement at the National Press Club today, in front of the UK’s High Commissioner to Australia, that the long-awaited negotiations will formally begin this afternoon.
“There is no doubt Australia was a casualty from the UK’s entry into the European economic community 48 years ago,” Senator Birmingham said.
“In 1973, the UK was Australia’s third largest two-way goods partner. Now it’s our 12th.
“UK consumers turned away from Australian produce when high tariffs and low quotas were imposed as a result of their membership of the EU. Brexit now presents new opportunities for our two nations.”
While Brexit was long in the works and the UK formerly left the EU at the start of the year, talks have been legally unable to happen until now.
Australia will be pushing agricultural and industrial products, reducing tariffs and trade barriers for them and protections for intellectual property.
Scotch and gin prices could drop in Australia if a deal is struck, while our wines, beef and other agricultural goods will fill English tables.
Farmers would benefit if European Union tariffs limiting Aussie access to the British market, particularly on beef, can be lifted under the deal.
Senator Birmingham addressed recent difficulties between Australia and it’s largest trading partner in China, which has seen restrictions on beef, barley and warnings against Chinese people travelling here for holidays or study.
But he said there was an opportunity for Australia and China to help each other through the economic recovery needed after the COVID-19 pandemic.
“Many of our goods and services are the building blocks of China’s economy. It’s not a zero sum game,” Senator Birmingham said.
“China’s decision on Australian barley impedes the ability of Australian exporters and farmers to compete on fair terms. It doesn’t just affect our farmers, though. It’s also a significant cost to Chinese consumers.”
He said while China’s actions could cost Aussie farmers $330 million, the flow on impact for Chinese consumers and producers was in the order of $3.6 billion.
The UK was Australia’s 12 largest trading partner in 2019, compared with its third biggest export market before Britain joined the EU in 1973.
Major accounting firms, banks and financial services businesses in Australia will be big winners under a deal, with better access to UK markets.
The UK already accounts for $15.2 billion, or 7.7 per cent of Australia’s total services trade.
It was understood the Australian and UK trade deal was likely to be the first signed post Brexit, despite Britain already starting talks with Japan last week and the United States in May.
The UK was also beginning talks with New Zealand today.
Prime Minister Boris Johnson needs a victory as he has been battling with the coronavirus crisis, which has left the UK with the highest death toll in Europe.
A trade deal with Australia would give Mr Johnson some proof that the pain of the Brexit debate was worth the trouble, with a shiny new trade deal with Australia promising prosperity and jobs as the UK economy tries to rebuild after dropping more than 20 per cent in April due to the COVID-19 lockdown.
Britain’s International Trade Secretary Liz Truss said: “Our new-found status as an independent trading nation will enable us to strengthen ties with countries around the world.
“Pivoting towards the Asia-Pacific will diversify our trade, increase the resilience of our supply chains and ensure the UK is less vulnerable to political and economic shocks in certain parts of the world.”