This landmark agreement will eliminate 99% of taxes on exports between the two countries, resulting in savings of approximately $10 billion for Australia on exports such as lamb, beef, sugar, and dairy. British exporters are expected to save around 200 million Australian dollars ($144 million) annually on products such as cars, whisky, and cosmetics.
Additionally, Australian agricultural exporters will enjoy improved access to the British market, and 40 million Australian dollars ($29 million) worth of tariffs on Australian wines entering the United Kingdom will be removed. The agreement will also facilitate easier living and working arrangements for Australians and Britons in each other’s countries.
The deal, set to take effect in 2022, aims to boost investments and aid in pandemic recovery efforts. It also marks a significant achievement for post-Brexit Britain, as it pursues trade agreements independently.
This agreement may further support Britain’s efforts to join the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), an 11-nation pact that includes Australia. Inclusion in the CPTPP would help address trade uncertainties in the Indo-Pacific region.
The International Trade Council commends the successful conclusion of negotiations between Australia and the United Kingdom and anticipates the positive impact this agreement will have on economic growth and international cooperation.