The Australia-United Kingdom Free Trade Agreement (AUKFTA) is a historic trade deal that aims to strengthen economic ties between these two nations. The agreement was announced in June 2020, and negotiations officially began in July of the same year. The deal is expected to benefit both countries and provide a boost to their respective economies.
The AUKFTA will eliminate tariffs on a wide range of products, including beef, lamb, and wine. It will also make it easier for businesses in Australia and the UK to access each other`s markets, creating new opportunities for trade and investment. The deal is expected to increase the value of bilateral trade between the two nations, which was worth approximately AUD 27 billion in 2019.
The agreement also includes provisions to improve access for UK and Australian service providers, such as lawyers, architects, and accountants. This will provide greater opportunities for businesses in these sectors to expand their operations and access new markets. The deal will also make it easier for businesses to cooperate on research and development projects, which is expected to lead to the creation of new products and technologies.
In addition, the AUKFTA includes commitments on labor and environmental standards. Both countries have agreed to uphold high standards of labor rights, including the right to collective bargaining and the elimination of child labor. The agreement also includes commitments to protect the environment and address climate change, including reducing greenhouse gas emissions.
The AUKFTA is expected to have a significant impact on a range of industries. For example, Australian exporters of agricultural products, such as beef, lamb, and wine, are expected to benefit from reduced tariffs. Meanwhile, UK businesses in the financial services sector are expected to benefit from improved access to the Australian market.
Overall, the Australia-United Kingdom Free Trade Agreement is a positive development for both countries. It is expected to increase trade and investment, create new opportunities for businesses, and strengthen economic ties between these two important trading partners. As the deal moves forward, it will be interesting to see how businesses in both countries respond and take advantage of the new opportunities that it presents.