The free trade agreement between U.K. and Australia is seen as a first step towards U.K. joining a wider Asia Pacific free-trade agreement
The United Kingdom (U.K.) and Australia today, i.e., Tuesday, June 15, 2021 announced a free trade agreement, forging new economic alliances, post-Brexit.
The Prime Minister of U.K. – Boris Johnson and Prime Minister of Australia – Scott Morrison finalized the terms of the agreement during a dinner at Downing Street on Monday night. The agreement in principle will be published in few days.
The new trade deal gives U.K. and Australian food producers and other businesses easier access to each other’s markets. The new agreement means the U.K. can sell products such as cars, scotch whisky, biscuits and ceramics at a cheaper rate to Australia.
Speaking on the occasion, Johnson said, “Today marks a new dawn in the UK’s relationship with Australia, underpinned by our shared history and common values. Our new free trade agreement opens fantastic opportunities for British businesses and consumers, as well as young people wanting the chance to work and live on the other side of the world.”
He further added, “This is global Britain at its best – looking outwards and striking deals that deepen our alliances and help ensure every part of the country builds back better from the pandemic.”
Taking it to twitter, the Trade Secretary of U.K. – Liz Truss tweeted,
🇬🇧🇦🇺trade deal done. The UK-Australia agreement:
— Liz Truss (@trussliz) June 15, 2021
👉 is the first we have negotiated from scratch, showing what we can do as a sovereign trading nation
👉 is a fundamentally liberalising deal
👉 strengthens the bond between two great friends and democracies
However, the farmers of U.K. are not happy with the agreement. The farmers fear that there will be no meaningful safeguards in place to stop farmers being undercut by cheap imports. According to the National Farmers Union (NFU), the Australian farmers are able to produce beef at a lower cost of production and could undercut farmers in the U.K. Also, they believe that U.K. will compromise on its food standards. This is majorly because Australia is allowed to use some hormone growth promoters, pesticides and feed additives that are banned in the U.K.
However, Liz Truss had said a month back that in a deal with Australia, the U.K. will make sure that U.K. farmers don’t get affected by it.
This is the first major bilateral free trade agreement which U.K. has brokered with Australia. It is seen as a first step towards U.K. joining a wider Asia Pacific free-trade agreement. The other trade agreements struck with Japan and Norway were built on the rollover agreement that the U.K. signed before it left the European Union (E.U.).
