Description

UK and Australia free trade Agreement

Date - 16th Jun 2021

The UK and Australia signed a free trade agreement on June 15, 2021. This bargain removes tariffs on a wide range of products. This deal was signed after the UK left the European Union. With this deal, the UK seeks to expand ties around the world. The deal is expected to boost exports of traditional British products such as Scotch whiskey. It will also increase imports of lamb and wine from Australia.

The deal will also help it join the Comprehensive and Progressive Agreement on the Trans-Pacific Partnership (CPTPP). CPTPP is considered the gateway to increased trade throughout the Asia-Pacific region. This will reduce tariffs on clothing and cars, as well as lower taxes on agricultural products. However, the cut in duties on agricultural products caused a negative reaction in the UK agricultural sector. They believe they will be undermined by imports of cheap meat from Australia.

Which countries does the UK have trade deals with?

The UK enters into free trade agreements with seven of the 11 CPTPP members, namely Australia, Chile, Japan, Canada, Mexico, Singapore and Vietnam. The Free Trade Agreement with Australia is the first UK trade deal to have been struck from scratch since the UK left the EU. The deals with Japan and Canada were based on existing agreements concluded by the EU.

Relations between the UK and Australia

The UK is Australia's fifth largest trading partner. Goods and services from both sides are valued at a $ 36.6 billion per year. UK trade with Australia accounts for about 1.2 Percent of total trade in 2020.

Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP)

CPTPP, also known as TPP11 or TPP-11, is a trade agreement between Australia, Brunei, Chile, Malaysia, Canada, Japan, Mexico, New Zealand, Singapore, Peru, and Vietnam. It arose on the basis of the Trans-Pacific Partnership (TPP), which never came into force due to the withdrawal of the United States.

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