UK's post-Brexit FTAs with Australia, New Zealand to be effective soon

08 May '23

2 min read

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The United Kingdom's first two free trade agreements (FTAs) negotiated post-Brexit are set to come into effect on May 31, significantly boosting bilateral trade with Australia and New Zealand by an estimated 53 per cent and 59 per cent respectively in the long run.
These would remove tariffs on all UK goods exports and cut red tape for digital trade.

The United Kingdom’s first two free trade agreements (FTAs) negotiated from scratch since leaving the European Union (EU) are anticipated to go live across all three countries from midnight on May 31 and are expected to raise bilateral trade with Australia by 53 per cent and with New Zealand by 59 per cent in the long term.

British Prime Minister (PM) Rishi Sunak recently met Australian counterpart Anthony Albanese and New Zealand PM Chris Hipkins in London.

Both trade deals will drive economic growth and innovation across the UK, Australia and New Zealand through the removal of tariffs on all UK goods exports, open unprecedented access for services, cutting of red tape for digital trade, and by making it easier for UK professionals to live and work in Australia and New Zealand, an official release said.

“These landmark deals squarely deliver on my priorities to drive economic growth, boost innovation and increase highly skilled jobs across the UK, ensuring we and our closest friends continue to prosper for generations to come,” PM Sunak said.

The UK and Welsh governments have now made the final legislative changes needed to bring the trade deals into action.

Services are central to the UK’s economy, accounting for around 80 per cent of its economic output and workforce, and one of its biggest export success stories.

Other benefits for the UK include investment opportunities and access to government contracts, including putting British businesses on equal footing to compete for an additional £10 billion of Australian public sector contracts per year and high investment screening thresholds for UK investors in New Zealand.

Tariff free access to both markets will be available for all British goods with flexible rules of origins, giving businesses a competitive edge over international rivals.

There will be reaffirmed commitments to the Paris Agreement and opportunities to grow the United Kingdom’s low-carbon economy, with tariffs on environmental goods liberalised.

There are robust protections for British farmers in both deals, including staging tariff liberalisation for sensitive goods over time.

Both countries are key members of the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), a huge trade bloc in the Indo-Pacific.

ALCHEMPro News Desk (DS)

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