Are you curious about the trading relationship between Australia and the United Kingdom? If you`re wondering whether there is a free trade agreement (FTA) in place between these two countries, the answer is yes – and no. Let`s explore.
Australia and the UK have a longstanding history of trade and investment, with the UK being Australia`s seventh-largest trading partner and the second-largest source of foreign investment. However, until recently, there was no specific FTA between the two countries.
In June 2021, the Australian and UK governments announced the finalisation of negotiations on a comprehensive and ambitious FTA. At the time, Australian Prime Minister Scott Morrison said that the deal was “about increasing opportunities for our businesses and our people to succeed through freer trade and increased investment.”
The agreement includes provisions to eliminate tariffs on a wide range of goods, including Australian wine, beef, and lamb as well as British cars and Scotch whisky. It also aims to make it easier for Australian and UK businesses to operate in each other`s markets, with commitments on things like intellectual property protection and digital trade.
While negotiations for the FTA have concluded, it still needs to go through legal checks and parliamentary approvals in both countries before it can take effect. The deal is expected to come into force in late 2021 or early 2022.
So, while there is not currently a free trade agreement between Australia and the UK, there soon will be. This agreement is expected to boost trade and investment between the two countries and create opportunities for businesses to expand into new markets.
As always, it`s important to keep up to date with changes in international trade agreements and regulations that could affect your business. By staying informed, you can ensure that you`re taking advantage of all the opportunities available to you and avoiding any potential pitfalls.