London/Canberra: – Prime Ministers of the United Kingdom and Australia informed that both the countries have agreed on a free trade agreement. British Prime Minister Boris Johnson said that this agreement is a new dawn in the UK-Australia relations. The British sources informed that this is the first bilateral agreement signed by the United Kingdom after Brexit.
Analysts claimed that this agreement with Australia is a successful step by the United Kingdom towards the CPTPP, the multinational trade agreement between 11 countries in the Indo-Pacific region. British Prime Minister Boris Johnson had announced ‘Global Britain’ when exiting the European Union. The main objective is said to be strengthening the British position in international trade and the strategic sectors.
The United Kingdom seems to have initiated expeditious steps in that direction in the last few months. Successful trade agreements with Japan and Canada, followed by the agreement with Australia, and efforts to sign a deal with India are a part of the same campaign. The concurrence with Australia on trade indicates that the British moves are becoming successful.
As per the agreement signed between the two countries, the export of British cars, biscuits, ceramics and liquor to Australia will become easier and cheaper. At the same time, the restrictions on British citizens below the age of 35 regarding travel and work in Australia have been relaxed. In addition, taxes on metals, machines and other agriculture-related products exported from Australia also will be reduced.
The media claimed that the agreement with the United Kingdom relieved the Australian farmers from the sanctions and regulations imposed by the European Union. The bilateral trade between the United Kingdom and Australia stood at GBP 20 billion (USD 28.3 billion) in the year 2020. As per the information released by the British trade department, bilateral trade will increase by nearly a billion dollars after the free trade agreement.
The exports from specific Australian sectors have been hit because of the trade war started by China against Australia. It is believed that this trade agreement signed with a country like the United Kingdom will bring some relief in that respect.