Australia-United Kingdom Free Trade Agreement: A new era for Australia-UK trade
27 June 2023
On 5 May, Australian Prime Minister Anthony Albanese and UK Prime Minister Rishi Sunak met in London to announce the long-awaited entry into force date of the Australia-United Kingdom Free Trade Agreement (A-UKFTA). The agreement came into effect from midnight 31 May, following the expected completion of UK domestic processes.
Prime Minister Albanese was in London to attend the Coronation of King Charles III, marking a significant week for both Australia’s head of state and a new era for Australia-UK trade relations.
The A-UKFTA, 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.
Andrew McDonald, chair of the Australia-UK Red Meat Market Access Taskforce, said the FTA provides an important framework to continue to do business with British customers and consumers.
“Australia and the UK have a long history of trade, with British consumers being loyal purchasers of Australian beef and sheepmeat,” Andrew said.
“The FTA provides an opportunity to modernise our trading relationship for the future, and we look forward to more streamlined trade and reduced supply chain costs with the implementation of the agreement.”
From midnight 31 May, Australian beef and sheepmeat exports entered the UK under a new tariff rate quota (TRQ) regime, with initial TRQ tonnages gradually increasing over a 10-year transition period. Product within the TRQ amounts will enter tariff free.
While there will be no TRQ regime post year 10, a volume safeguard provision will apply until the end of year 15, beyond which no safeguards will apply.
“We congratulate the Prime Ministers on finalising this significant milestone in Australia-UK relations and express our gratitude to all who have worked diligently to realise such an outcome,” Andrew said.
