Australia-UK free trade deal: How Australians will benefit
Early trade talks between Australia and the UK have been hailed “productive”. Find out what’s in it for you.
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The first round of trade talks between Australia and the UK have been hailed “productive”.
Following it’s split from the European Union in January, the UK embarked on talks to sign new trade deals with the United States, Japan, New Zealand and Australia.
The first round of talks with Australia were held virtually between June 29 and July 10.
British trade minister Liz Truss on Tuesday said the initial talks with Australia had laid the groundwork for a comprehensive deal.
“Discussions between negotiators were productive and reflected our shared ambition to secure a comprehensive deal to boost trade and investment between our like-minded economies,” Ms Truss said in a statement.
“Teams discussed their respective objectives and agreed a forward plan for future talks. Our positive discussions in round one have laid the groundwork for the UK and Australia to achieve high-quality outcomes across the agreement.”
Australia’s Trade Minister Simon Birmingham last month told the National Press Club that he was “throwing the kitchen sink” at getting the trade deal done quickly.
The landmark agreement, which could be done by the end of the year, would add up to $2 billion in trade between the two countries.
This is what it means for Australians:
BETTER WORKING RIGHTS
Lobby groups and think tanks have been pushing hard for free movement of people which would allow Brits to travel to Australia without a visa and vice versa.
However News Corp Australia understands that it was more likely certain visa restrictions would be addressed to let more people move between each country for work.
One of the restrictions likely to change is allowing Australians under 30 to use their youth visa twice.
For example, if a person worked in a bar in London in their early 20s and wanted to go back as a professional later they would be allowed.
Under the current scheme the youth mobility visa can only be used once, even if the full two years has not been taken.
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.
UK International Trade secretary Liz Truss visiting Australia last year raised the possibility of more work rights for Australians in the UK.
And Australia’s Trade Minister Simon Birmingham last month 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.”
SUPERCHARGE EXPORTS
The UK was Australia’s third biggest trading partner before it entered the EU in 1973 but has slipped to being the 12th largest market.
Exports of beef, wheat and sugar dropped 90 per cent compared with the pre EU levels because of European tariffs, quotas and subsidies.
Australia will be pushing agricultural and industrial products, reducing tariffs and trade barriers and protections for intellectual property.
Australia’s Trade Minister Birmingham in January said he wanted to get the UK back into the top 10 of Australia’s trading partners.
“Our aim is to definitely open up the market, including in beef and sheep as well as wheat and sugar,” he said.
Scotch and gin prices could drop in Australia, while Australian wine – which accounts for about one in five bottles sold in the UK already – is also likely to be a big winner.
SERVICES BOOST
Services including financial and professional services and telecommunications will be big winners under a successful deal, with better access to UK markets.
The UK is our third-largest services trading partner, accounting for $15.2 billion, or 7.7 per cent, of our total services trade.
Australia is pushing for mutual recognition of professional qualifications, and providing greater certainty for skilled professionals entering the UK labour market.
Similarly, the UK is hoping for a deal that makes it easier for British banks and financial service firms to set up in Australia.
LIFT DIGITAL TRADE
Australia doesn’t want to miss out on the new opportunities technology is giving global economies – especially post-COVID-19.
That’s why Aussie negotiators will be pressing for commitments with the UK that will reduce digital trade barriers to help Australians to engage with, and benefit from, the digital economy.
Any deal with go hand-in-hand with protections for consumers.
For more on the FTA visit DFAT