The United Kingdom and Australia have agreed to a free trade agreement that will benefit both consumers and companies, according to the UK.
It is touted as the first post-Brexit deal negotiated from the ground up, rather than “rolling over” from trade conditions enjoyed by the UK when it was a member of the EU.
The government calculated that eliminating tariffs on all UK exports would release £10.4 billion in new commerce.
However, other UK farmers are concerned that low-cost imports may undercut them.
The UK’s attempt to join the Trans-Pacific Partnership, one of the world’s largest free trade agreements, will be boosted as a result of the agreement, according to the government.
Australia has applauded the agreement, which is the country’s second-largest trade agreement with another country.
“It’s a real free-trade deal, and it’s a very historic accord. Everyone comes out on top “Dan Tehan, Australia’s Trade Minister, acknowledged as much.
The deal will go into effect next year after being signed in a virtual ceremony by International Trade Secretary Anne-Marie Trevelyan.
“A momentous moment in the historic and crucial connection between our two Commonwealth states,” Ms Trevelyan said.
She went on to say that it illustrated what the UK might do as “an agile, autonomous sovereign trading nation.”
She denied claims that the pact will affect UK farmers in an interview.
She said that the agreement had “extremely explicit protections” and “clear tariff quotas in the first ten years,” as well as a “overarching safeguard system.”
“The fact is that around 70% of Australia’s beef and sheep meat is exported to Asia-Pacific markets,” she added.
“They are closer to them and receive better deals. So, while I don’t expect a major rise into UK markets, and I’m certain that our citizens will continue to buy what they want, I’m delighted to take steps that will increase consumer choice.”
The agreement removes tariffs on 99 percent of Australia’s exports and makes it simpler for Australians to live and work in the United Kingdom.
It will also assist Australia’s wine, cattle, and sugar sales. Due to recent political tensions, China, Australia’s biggest export market, has imposed a boycott on certain products.
A free trade agreement tries to lower the cost of commerce, mainly in products but rarely in services. This is frequently accomplished by lowering or abolishing tariffs, which are government-imposed levies or fees on cross-border trade.
Quotas, or restrictions on the number of products that may be exchanged, are also a goal of trade agreements.
Countries that share the same rules, such as the color of wires in plugs, can make trade easier. The more closely the laws are adhered to, the less likely it is that items will need to be inspected.