Britain and Australia reach the first free trade agreement after Brexit | International Trade News

British Prime Minister Boris Johnson stated that the agreement marked a “new dawn” for the relationship between Britain and its former colonies.

The United Kingdom and Australia announced a new trade agreement on Tuesday, the first such agreement that the United Kingdom has negotiated from the ground up since leaving the European Union.

The agreement will eliminate tariffs and red tape, and has been hailed by British Prime Minister Boris Johnson as the “new dawn” for relations between the two countries.

Johnson’s Conservative government sees the deal as an important part of its post-Brexit strategy, which aims to shift the country’s economic center from Europe and seek new opportunities in the faster-growing Indo-Pacific countries.

Earlier transactions with other countries, including Japan, were based on existing agreements reached by a group of 27 member states.

Australian Prime Minister Scott Morrison (Scott Morrison) and Johnson (Johnson) overcome the sticking points in the meeting after the British G7 meeting, and Morrison attended the meeting as a guest.

Britain said the deal would mean it would be cheaper to sell products such as cars, Scotch whiskey, biscuits and ceramics in the former British colony of Australia.

It will also enable British citizens under the age of 35 to travel and work in Australia more freely.

On the other hand, the agreement will eliminate tariffs on Australian goods such as wine, swimwear and sweets imported into the UK.

“The UK is at its best worldwide”

“With the support of our shared history and shared values, today marks a new dawn in the relationship between the UK and Australia,” Johnson said in a statement.

“This is where the UK is at its best globally-looking out and making deals to deepen our alliance and help ensure that every part of the country can better recover from the pandemic.”

Foreign Secretary Dominique Raab said on Twitter that the agreement is an “important stepping stone” for efforts to join the Indo-Pacific Free Trade Area-the Comprehensive Progress Agreement for Trans-Pacific Partnership.

The UK is Australia’s eighth largest trading partner and Australia is the UK’s 20th largest trading partner, with a bilateral trade volume of 26.9 billion Australian dollars (20.7 billion US dollars).

Before Britain joined the then European Common Market in 1973, it was Australia’s most profitable trading market.

“A Triumph of Australian Agriculture”

Although more details about the transaction have not yet been announced, some official estimates suggest that in the long term, the agreement may add 500 million pounds (705.7 million US dollars) to the UK’s economic output-for a value of approximately 2 trillion pounds. (US$2.8 trillion) of the economy, this is only a small part.

The agreement will be reviewed by British farmers, who worry that if the agreement removes tariffs on lamb and beef imported from Australia, they may be forced to suspend business.

The United Kingdom stated that British farmers will enjoy tariff-free import ceiling protection within 15 years through tariff quotas and other safeguards.

Australian Trade Minister David Littleproud told 4BC Radio that the deal marked a “victory for Australian agriculture.”

However, Australia’s economy has focused on Asia.

Ben Willings, a senior lecturer in politics and international relations at Monash University, said: “This free trade agreement is more of a symbolic meaning than an immediate tangible material benefit.”

Source link

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker