More travel, jobs, exports as UK Free Trade Agreement is fast-tracked
The free trade deal comes into force at the end of this month, resulting in three year working visas between Australia and the UK.
Business and industry groups have welcomed the UK-Australia free-trade deal that will take effect at the end of the month, strengthening trade ties and forging a three-year working visa arrangement between the countries.
Australian Chamber of Commerce and Industry chief executive Andrew McKellar said the deal would bolster trade between the two nations – which already exceeds $20bn a year – and give Australian producers the opportunity to take their goods to one of the largest markets in the world.
“The elimination of tariffs on over 99 per cent of Australian goods exports to the UK through this agreement ... represents a genuine opportunity for Australian producers,” he said.
Australian Industry Group chief executive Innes Willox said the announcement was a “welcome step” towards bringing the Australian and UK economies closer together, and the government’s full attention could now be focused on negotiating a free-trade deal with the EU.
“The UK remains an important market for Australian goods, services and investment, and despite Brexit the UK remains an important gateway to Europe for many Australian businesses,” he said. “The completion of the agreement also clears the path for a focus on finalising a free-trade agreement with Europe, which if successful would be highly consequential for Australian industry.”
Australian British Chamber of Commerce chief executive Ticky Fullerton said the announcement marked the first major free-trade agreement the UK had made post-Brexit, and signified the significance of the relationship on the back of the AUKUS pact. “The UK presents a really interesting opportunity for companies looking to expand abroad, particularly as many people in business are thinking about diversifying their export markets,” she said.
Prime Minister Anthony Albanese, who is in the UK for King Charles’s coronation, said “it is game on”, with the changes to the labour market meaning UK citizens up to the age of 35 can obtain three-year temporary visas to Australia and vice versa. Previously the one-year working holiday visa for UK citizens was only for people up to the age of 30.
Visiting an Australian-themed store, Bondi Green, in Paddington, London, on Thursday, Mr Albanese said the final processes of the FTA were being passed through the British parliament so that on Friday when he was to meet British Prime Minister Rishi Sunak the work would be completed before the coronation. “You always need a deadline,’’ he said.
“And this afternoon, literally today, some of the processes in the UK parliament are being completed so that tomorrow when I meet with Prime Minister Sunak at Number 10 Downing Street we will be able to complete the FTA timetable so … it will come into force on May 31.
“That will be a date at which people can pencil in – Australian companies – to really push for greater benefit, with more wine, more sheep products, more beef, more seafood, more spices, more products from Australia to be present here. That means more jobs in Australia.
“It also means more economic activity and growth for Australia. And also, might I say, something beyond the economic, something not quite tangible in dollar terms, is more pride.”
Mr Albanese said he was now turning to the discussions with European leaders to drive a free trade deal with the EU. He was to meet European Commission president Ursula von der Leyen on Friday, and has invited European leaders to Australia for talks.
He discussed the trade issue with German Chancellor Olaf Scholz last Friday.
Mr Albanese said: “We’re continuing to work very hard because we want that (EU free-trade agreement) to come into effect as soon as possible as well ... But now that this (UK FTA) has been finalised, we can really hone in on the European agreement.”
More Coverage
Dutton shrugs off new Labor scare campaign
Labor will launch the start of federal parliament for 2025 with a multi-broadcast scare campaign against Peter Dutton, as the Opposition Leader signalled he would not accept a public service workforce above 200,000.
Queensland cans hydrogen pipe dream
Australia’s largest green hydrogen project has collapsed, with Queensland’s Crisafulli government pulling funding from construction of the $12.5bn plant and pipeline in Gladstone.