Chamber welcomes UK-Australia trade deal
The Chamber has welcomed the announcement on the UK securing a trade deal with Australia, which will eliminate tariffs on all UK goods, writes Philip Parkin.
It is the first major trade deal negotiated from scratch since the UK left the European Union.
The main elements of the deal were agreed by Prime Minister Boris Johnson and Australian Prime Minister Scott Morrison and means British products such as cars, Scotch whisky, biscuits and ceramics will be cheaper to sell into Australia, boosting UK industries that employ 3.5 million people across the country.
The UK-Australia trade relationship was worth £13.9 billion last year and is set to grow under the deal, said the government.
The government said that the trade agreement was also a gateway into the fast-growing Indo-Pacific region and will boost the UK 's bid to join CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership), one of the largest free trade areas in the world, covering £9 trillion of gross domestic product (GDP) and 11 Pacific nations from Australia to Mexico.
The UK exported £5.4 billion worth of services, including £1.4bn of insurance and pension services and £780m of financial services, to Australia in 2020.
Chamber international director Mandy Haque said: “We welcome this agreement in principle. There is still a lot of work to go on behind the scenes, but this is a good step forward, not least because it will eliminate tariffs for UK exporters to this important market.
“I would urge the government to work with the business community in the coming months to insure they have the opportunity to shape the agreement. ”
Daniel Clarke, policy manager at the Chamber, said: “The GBCC welcomes the announcement of an agreement in principal between the UK and Australia.
“A free trade agreement between the two countries will create opportunities for British businesses with the deal set to eliminate tariffs on all UK goods.
“However, with the full details yet to be published, we will be following developments closely to find out more detail on what this deals means in practice for businesses.
“This trade agreement represents the first major trade deal of the post-Brexit era and whilst it is encouraging to see that the UK is looking to foster closer trading relationships with countries outside of the EU, more needs to be done to engage with UK businesses to ensure that any trade deals negotiated meet the needs of the businesses community.
“It is imperative that the government also works closely with businesses to help them access the opportunities from the new terms of trade with Australia.
Commenting from the Australian viewpoint, Warren Bartlett, deputy commissioner, Europe, for Trade & Investment Queensland, said: “Queensland is an export-orientated economy. The Aus-UK Free Trade Agreement is likely to present significant opportunities for bilateral trade between the UK and Queensland across a number of industry sectors.
“As further details of the trade agreement emerge, Trade & Investment Queensland (TIQ) will assist Queensland exporters to identify specific UK market opportunities and support UK businesses seeking to establish a presence in Queensland in order to service the Australian market. ”
The Chamber is hosting a virtual Global Trade Conference on 23 June which is free to attend.
Click here to find out more and register for the conference.
For more information on the support available from the Chamber's international trade team, contact Jane Matty at jane.matty@mobile.trade.gov.uk
Pictured: Australia's Sydney Opera House