Australia-United Kingdom Free Trade Agreement: a winner for Australian beef

By Jason Strong, Managing Director, MLA

Just prior to the Coronation of King Charles III, Australia’s Prime Minister, Anthony Albanese and UK Prime Minister, Rishi Sunak, announced that the Australia-United Kingdom Free Trade Agreement (A-UK FTA) will enter into force at midnight on May 31.

The A-UK FTA, which was agreed in principle in June 2021 and signed on 17 December 2021, will see Australian beef, sheepmeat and goatmeat access to the UK liberalised over a transition period of 10 years.

In 2022 the UK was Australia’s 15th-largest goods trading partner, with two-way goods trade valued at $10 billion.

However, prior to the signing of this agreement, Australian beef exports to the UK were restricted by a post-Brexit quota of only 3,761 tonnes (at 20% in-quota duty), with tariffs above the quota as high as 12% + 254 Great Britain Pounds per 100kg.

As part of the agreement, 35,000 tonnes of Australian beef can enter the UK duty free in year 1 - with the volume increasing year by year. After ten years, Australian beef will enter the UK without any volume restriction at all.

This significantly improved market access will provide new export opportunities for Australian beef producers and exporters. While British consumers will be able to finally experience more of the very best of Australian beef.

Stakeholder feedback has been very positive, with MLA now gearing up to provide technical expertise to both the trade and potential British end users in order to capitalise on the new access.

Australia remains a world leader in producing high-quality, healthy, and sustainable red meat, underpinned by our world-leading traceability systems to achieve our customers’ expectations.

We’re confident that when more Australian red meat hits the plates in the UK under the FTA, UK consumers will be impressed by the amazing quality and how great it tastes.