UK-Australia trade deal 'is a win-win' says panellist

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Australia and Britain are now at “a new dawn” in their trading relationship according to Prime Minister Boris Johnson. As a result, many British products such as cars, Scotch whisky, biscuits and ceramics will be cheaper to sell to Australia. But alongside improved trading terms, the new deal is expected to pave the way for new deals with 11 more countries. But how? Express.co.uk brings you the latest Brexit news.

The UK and Australia have now agreed the major terms for a free-trade deal.

This landmark deal is the first agreed upon by Britain since the Brexit trade agreement was finalised.

The Government has long argued Brexit paved the way for better deals and now many are in support of the free-trade agreement outlined with Australia.

The deal has now been fully ratified as of yet and therefore the text has yet to be published, but the key terms involve the removal of most tariffs as soon as a deal is done.

After 15 years, there will be no tariffs or quotas on agricultural trade.

This will give Australia better access to the UK food market, as well as enabling easier and cheaper trade for Australian farms to export products to the UK.

British companies will also enjoy this same access to the Australian market.

The British Government said the deal means “iconic British products like cars, Scotch whisky, biscuits and ceramics will be cheaper to sell into Australia.”

Before the coronavirus pandemic, the UK exported around £12bn worth of goods and services to Australia.

In the 1950s, around 12.5 percent of British exports went to Australia, but in the wake of the UK’s deal with the EU this dropped.

With the new trade deal, trade figures are expected to increase because trade will become much easier.

Some UK farmers fear they may be undercut on price and standards.

However, Secretary of State for International Trade Liz Truss has said the deal will not harm British farmers and they will be protected by the gradual phasing out of tariffs.

She said there will be a five-year period of safeguards to “make sure that there are no import surges into the UK market.”

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But not only will the deal open up trade relations between the UK and Australia, but the deal is also opening up opportunities in a further 11 countries.

Ms Truss said the deal could be the key to unlocking future trade agreements elsewhere in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

She said: “This is the first UK trade deal struck from scratch since Brexit.

“It’s not just important in itself it’s got opportunities within Australia.

“It’s also about access to the wider Pacific market. We want to sign up to the Trans-Pacific partnership – a market of 11 countries, 500 million people and doing the Australia deal is a key part of that.

“That’s where the growing demand is for the kind of products and services we sell.”

The CPTPP consists of 11 countries including Japan, Canada, Mexico, Peru, Chile, Australia, New Zealand, Malaysia, Singapore, Vietnam, and Brunei.

More than 500 million people live in these countries and the trading partnership made up £110 billion worth of UK trade in 2019.

The Australian trade deal was hailed as an “important stepping stone” to a deal with the CPTPP according to one person close to negotiations.

An agreement with the CPTPP would be seen as another major win for Ms Truss, as the partnership includes a number of fast-growing economics and established regional players.

Any deal would be seen as a huge win for Boris Johnson’s post-Brexit “Global Britain” agenda.

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