The Australian and United Kingdom governments have finalised their Agreement in Principle. The AIP sets out the terms on which the free trade agreement will be concluded.
The FTA will deliver more Australian jobs and business opportunities for exporters, greater access to the UK for businesses and workers, and tariff free UK products for Australian consumers.
Minister for Trade, Tourism and Investment Dan Tehan said the AIP would provide the scaffolding around which the FTA would be built.
“Free trade agreements are complex, legal documents and there is still much work to do to deliver our final agreement with the UK,” Mr Tehan said.
“When the agreement is finalised it will deliver the most comprehensive and liberal agreement outside our partnership with New Zealand.
“The AIP contains agreements that are locked in that will benefit Australian farmers and workers, such as:
“Beef tariffs will be eliminated after ten years. During the transition period, Australia will have immediate access to a duty-free quota of 35,000 tonnes, rising in equal instalments to 110,000 tonnes in year 10.
“In the subsequent five years a safeguard will apply on beef imports exceeding a further volume threshold rising in equal instalments to 170,000 tonnes, levying a tariff safeguard duty of 20 per cent for the rest of the calendar year.
“Sheep meat tariffs will be eliminated after ten years. During the transition period, Australia will have immediate access to a duty-free quota of 25,000 tonnes, rising in equal instalments to 75,000 tonnes in year 10. In the subsequent five years a safeguard will apply on sheep meat imports exceeding a further volume threshold rising in equal instalments to 125,000 tonnes, levying a tariff safeguard duty of 20 per cent for the rest of the calendar year.
“Sugar tariffs will be eliminated over eight years. During the transition period, Australia will have immediate access to a duty-free quota of 80,000 tonnes, rising by 20,000 tonnes each year.
“Dairy tariffs will be eliminated over five years. During the transition period, Australia will have immediate access to a duty-free quota for cheese of 24,000 tonnes, rising in equal instalments to 48,000 tonnes in year five. Australia will also have immediate access to a duty-free quota for non-cheese dairy of 20,000 tonnes. There will be a further duty-free transitional quota for butter of 5,500 tonnes rising to 11,500 tonnes in year five.
“The FTA will improve working holiday opportunities for youth in both countries. Eligibility to participate will be raised from 30 to 35, stays allowed up to three years, and people will have more freedom to choose where they work
“Australia will continue to work with the United Kingdom to deliver this gold-standard FTA that will benefit both countries and serve as a marker to our shared commitment to free trade.”
