£10.4bn trade deal between Australia and UK signed

The UK has signed a trade agreement with Australia creating new work and travel opportunities for Brits and Australians.

The deal was ‘agreed in principle’ in June, and negotiators have now finalised all chapters of the agreement. The final deal was signed in a virtual ceremony by International Trade Secretary Anne-Marie Trevelyan MP on Friday morning and will now be laid in the UK Parliament for a period of scrutiny.

The deal is expected to unlock £10.4bn of additional trade, boosting the economy and increasing wages across the UK, while eliminating tariffs on most UK exports.

The deal establishes rules ensuring the fair treatment for UK investors, greater legal certainty to prohibit discriminatory treatment and reduces the risks associated with investment decisions. It will also allow young people to work and travel in Australia for up to three years at a time, removing previous visa conditions.

In addition, UK service suppliers including architects, scientists, researchers, lawyers and accountants will have access to visas to work in Australia without being subject to Australia’s skilled occupation list. This is more than Australia has ever offered any other country in a free trade agreement.

The deal also removes tariffs on UK exports, making it cheaper for Australian importers to sell British products like cars, Scotch whisky and UK fashion. Australian products like Jacob’s Creek and Hardys wines, Tim Tams and surfboards will be more accessible for British consumers.

The deal is also a gateway into the Indo-Pacific region and will, it is expected, boost the UK’s bid to join CPTPP, one of the largest free trade areas in the world, covering £8.4trl of GDP and 11 Pacific nations from Australia to Mexico.

International Trade Secretary Anne-Marie Trevelyan MP said:  “Our UK-Australia trade deal is a landmark moment in the historic and vital relationship between our two commonwealth nations.

“This agreement is tailored to the UK’s strengths, and delivers for businesses, families, and consumers in every part of the UK – helping us to level up. We will continue to work together in addressing shared challenges in global trade, climate change and technological changes in the years ahead.

“Today we demonstrate what the UK can achieve as an agile, independent sovereign trading nation. This is just the start as we get on the front foot and seize the seismic opportunities that await us on the world stage.”