Australia-UK free-trade deal: Prime ministers reach in-principle agreement

Australia and the UK have finally reached an in-principle agreement on a historic free-trade agreement between the two countries. Here’s what we know so far.

British Prime Minister Boris Johnson (right) welcomes his Australian counterpart Scott Morrison to 10 Downing St. Picture: Rob Pinney/Getty Images

Australia and the United Kingdom have reached an in-principle agreement for a free-trade deal between the two countries.

The deal will be formally announced In London this evening (AEST) in a joint press conference between Prime Minister Scott Morrison and British Prime Minister Boris Johnson.

Further details of the agreement will be released then.

Agriculture and working holiday-maker visas were among the sticking points going into the past weekend of negotiations.

UK farmers had feared a free trade deal would lead to an influx of Australian beef imports if quotas and tariffs were removed.

Australian farmers, however, had countered that Australian beef exports to the UK would remain a small export opportunity, given the tyranny of distance.

The UK was also pushing Australia to scrap its requirement that British backpackers complete 88 days’ farm work to extend their working holiday visas another year.

If accepted, that provision would further hamper farmers’ ability to source casual labour, as backpackers typically make up the bulk of the harvest workforce.

A spokesman for Mr Morrison said the prime ministers had held a “positive” meeting overnight and “have resolved outstanding issues in relation to the FTA”.

“Their agreement is a win for jobs, businesses, free trade and highlights what two liberal democracies can achieve while working together,” he said.

“Both PMs will make a formal announcement on Tuesday morning in London and release further information.”