Australia – UK trade deal to come into effect from May 31

From May 31, 2023, over 99 per cent of local goods exported to the UK including wine, rice, honey, nuts and manufactured products will be tariff-free, as the Australia and UK’s free-trade agreement (FTA) comes into force.

The announcement was made following Prime Minister Anthony Albanese’s recent visit to the UK.

“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.”

For primary producers, the enforcement of the deal means tariffs will be removed over a number of years on several agricultural products including beef, sheep meat, dairy and sugar. Within ten years, all tariffs will be removed completely.

In return, within five years, all UK imports will enter Australia duty free.

The agreement also enables Australians aged 35 years and under (up from 30 previously) to apply for working holidays in the UK and stay for a maximum of three years instead of two.

The National Farmers Federation (NFF) said the trade deal finally coming into effect after it was signed a year and a half ago is great news for Australian producers.

“The FTA improves access to an important market for Australian farmers and will allow them to diversify their markets,” said NFF Vice President, David Jochinke.

“It will importantly give UK customers the option of sustainable, high quality Australian produce on supermarket shelves to complement their existing home-grown options.”

The NFF is now calling for the Federal Government to establish a similar deal with the EU.

“The success of the Australia-UK FTA highlights the need for the Australian Government to ensure a good deal for farmers under the Australia-EU FTA,” he said.

“We need to see clear, beneficial market access for Australian farmers and cannot accept Geographical Indicators or punitive conditionality that disadvantages Australian producers.”