Free trade deal between Australia and the UK to come into effect at the end of May

Australia and the UK have announced a new free trade agreement, hailed as a major win for Australian farmers. The deal, set to come into force at the end of this month, will remove tariffs on a range of Australian products, including beef, lamb, dairy, and sugar. For Australian farmers, this will mean increased access to the UK market, potentially resulting in more jobs, economic activity, and growth.

The UK and Australia have a long-standing trade relationship in which the UK has been a loyal purchaser of Australian beef and sheep meat, although in small volumes. With the A-UK FTA, this trade will become more streamlined, eliminating costly obstacles in the red meat supply chain that have disadvantaged British consumers and stifled market development.

The FTA provides opportunities for both Australian and British exporters to expand their markets and demonstrates the countries' commitment to rules-based, open trade. Once ratified, Australian beef and sheep meat exports will enter the UK under a tariff rate quota regime, with the initial quota gradually increasing over a 10-year transition period. Products within the quota amounts will enter the UK tariff-free. Although there will be no tariff rate quota regime post-year 10, a volume safeguard provision will apply until the end of year 15, beyond which no safeguards will apply.

However, some British farmers have raised concerns about an influx of meat and dairy from much larger Australian producers, who will pay no tariffs on exports to the UK within 10 years. The agreement also includes provisions for young Australians moving to the UK to have more time to stay there, as well as scrapping farm service for Brits.

The UK expects trade with Australia to jump 53% "in the long term", with a 59% increase for New Zealand. Meanwhile, Australia predicts the deal will save Aussie shoppers $200 million annually on British products.

This deal is particularly significant for the meat and dairy industry, as Australian beef and dairy will have increased access to the UK market. While some may have concerns about the impact on British farmers, the deal has been praised as a "game-changing" and "historic" agreement that will deliver significant benefits to both Australian exporters and UK consumers.