During his visit to the United Kingdom, Prime Minister Anthony Albanese announced 31 May as the date of entry into force of the Australia-United Kingdom Free Trade Agreement (A-UKFTA), following the expected completion of UK domestic processes.

With the entry into force of this comprehensive agreement, there will be no tariffs on over 99 per cent of Australian goods exports to the UK, including wine, opening up new export opportunities, including for the Australian wine sector.

Savings of approximately $200 million a year will be made as tariffs on imports from the UK are eliminated. After five years, all UK imports will enter Australia duty free, helping ease input costs for Australian business.

“This agreement will deliver significant benefits to Australian exporters, consumers, workers, and our economy more broadly,” Prime Minister Albanese said.

““The Australia-UK FTA represents one of the most comprehensive, innovative and ambitious free trade agreements concluded by Australia to date and strengthens an already close relationship between Australia and the UK.”

On services exports worth $4.4 billion in 2021-22, the deal includes commitments on the movement of business people, making it easier to do business in the UK market.

The FTA also provides a framework for professional bodies to agree to streamline licensing processes to facilitate the movement of qualified professionals between Australia and the UK. This outcome will help address the skills shortage in Australia.

Within two years of entry into force, Australians will be able to apply for working holidays in the UK to the age of 35, up from 30, and stay for a maximum of three years instead of two.

Digital trade rules under the A-UKFTA will provide greater certainty and facilitate trade for Australian businesses looking to grow their digital footprint in the UK.

“Our trade agreement with the UK will significantly reduce costs for exporters and assist Australian businesses seeking to diversify trade to a wider range of overseas markets,” Minister for Trade and Tourism Don Farrell said.

“This agreement will underpin and deepen the already strong bilateral investment relationship with our second-largest source of foreign direct investment in Australia.”

The deal includes strong commitments on the environment, including climate change, and labour. The trade agreement will preserve the right of the Australian Government to regulate in the public interest, including for the environment, education, and health. Importantly, there is no Investor-State Dispute Settlement mechanism.

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