Melbourne, August 22, 2023 - The International Trade Council is pleased to acknowledge the successful implementation of the Australia-United Kingdom Free Trade Agreement (FTA). This milestone was celebrated today during the Australian British Chamber of Commerce business lunch in Melbourne.
The recent activation of this gold-standard trade agreement marks a significant shift in the economic relationship between Australia and the UK. It is considered one of the most comprehensive, innovative, and ambitious trade agreements ever executed by Australia.
Key Highlights from the Agreement:
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Increased Consumer Benefits: The FTA aims to offer a wider choice of household items at reduced prices by decreasing tariffs, a benefit that consumers in both nations will enjoy.
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Duty-Free Trade: Over ninety-nine percent of Australian goods can now be exported to the UK without any duties.
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Strengthened Bilateral Trade: Within the first month of the agreement's enactment, Australia witnessed a nearly 200% increase in exports to the UK compared to the same period in the previous year.
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Historical Ties Reinforced: The agreement acknowledges the long-standing trade relationship between the two nations, dating back to 1879 when the first shipment of frozen red meat was exported from Australia to the UK.
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Fostering Professional Mobility: The FTA simplifies procedures for Australian professionals, service providers, and investors to conduct business in the UK. Additionally, new pathways have been introduced for skilled workers from the UK to meet local demand in Australia.
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Digital Advancements: The agreement will remove local data hosting requirements, offering businesses more freedom in data management between the two countries. Notable Australian fintech, PEXA, is already leveraging these provisions to scale its operations in the UK.
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Medical Innovations: Australian company Seer Medical, represented by Chief Services Officer Tim Nelson, will benefit from this trade agreement. Their award-winning epilepsy diagnostic services will now be accessible to a wider audience in the UK, thanks to workforce mobility options included in the FTA.
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Commitment to Environmental Initiatives: The Environmental Chapter will see the nations cooperating more closely in transitioning to cleaner, renewable energy.
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Support for Artists: Australian creators, including First Nations artists, will now earn royalties when their original artworks are resold in the UK.
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Public Interest Preserved: The FTA respects the rights of both governments to regulate in areas like environment, education, and health. Notably, there is no Investor-State Dispute Settlement mechanism included.
The International Trade Council recognises the hard work and dedication that went into securing this agreement, particularly in the face of ongoing negotiations for a potential free trade agreement with the EU.
The Australia-UK FTA serves as a shining example of the commitment to enhancing global trade relations, always with national interests at the forefront. This agreement is expected to bring about broad benefits for the Australian community and herald a new era of prosperity.
For more information on how businesses can leverage this FTA, please contact the International Trade Council.
