London/Canberra : The United Kingdom established a successful Free Trade Agreement with Japan and Canada after Brexit, stepping out of the European Union. Now, it has proposed such an agreement to Australia. The UK government informed that British State Secretary for International Trade, Liz Truss made the offer to Australia on Friday. Besides, against the backdrop of China’s trade war with Australia, the proposal by the UK stands significant.
British Prime Minister Boris Johnson had declared a plan for ‘Global Britain’ after Brexit. The primary objective of this initiative is believed to be strengthening UK’s position in the international trade and strategic areas. As a part of it, the UK has prioritised the Indo-Pacific region in its international policy.
The UK has stepped up its efforts for it over the last few months. Moreover, the Free Trade Agreement signed with Japan is said to be the first step towards it. Following that, the UK announced its involvement in the CPTPP, a multinational trade agreement comprising 11 nations. Alongside this agreement, the UK also initiated steps to establish a trade agreement with major countries such as India and Australia.
The agreement proposed by the British State Secretary for International Trade on Friday is part of the effort. In 2020, a bilateral trade worth $28.3 bn (equivalent to 20 billion pounds) was reached between the UK and Australia. This majorly included metals, medicines, cars, machines and wine. According to the British Department for International Trade, UK’s exports will reportedly increase by $1bn after signing the Free Trade Agreement with Australia.
Furthermore, the rising tension with China, Brexit and coronavirus pandemic are said to be the factors attributing to the vigorous attempts of the UK to sign agreements with Australia, India and the CPTPP. Huawei ban, Hong Kong and other issues have significantly strained UK-China relations. Besides, these relations do not seem likely to be restored anytime soon. In such a situation, the UK needs increasing support to counter China, and the trade agreement with Australia is significant for it.
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