Thank you for contacting me about the trade deal with Australia.
The UK has signed an historic trade agreement with Australia, our first from scratch since leaving the EU. The deal was agreed in principle in June 2021 and, with all chapters of the agreement since finalised, signed in December 2021. The deal eliminates all tariffs on UK imports and exports to Australia. This makes it cheaper to sell iconic British products to Australia, benefiting British business, while making Australian favourites cheaper for British consumers. I welcome that this deal has been formally confirmed through the Trade (Australia and New Zealand) Act 2023.
UK businesses are guaranteed access to bid for an additional £10 billion worth of Australian public sector contracts per year, putting them on an equal footing with Australian companies. The majority of UK investments no longer need to be reviewed by the Australian Foreign Investment Review Board, saving time, saving money, and cutting red tape for UK investors. I understand that this is the most substantial level of access Australia has ever granted in a free trade agreement.
Demonstrating the benefits of an independent trade policy, the deal is also tailored to the strengths of the UK economy, including our world class service, digital and tech sectors. UK services are able to compete in the Australian market on guaranteed equal footing, while the opportunities for digital trade with Australia are expanded.
It is also making it easier for people to travel between the UK and Australia. Under the agreement, British people under the age of 35 are able to travel and work in Australia more freely, opening up exciting opportunities for young people. For the first time, UK service suppliers including architects, scientists, researchers, lawyers and accountants have access to visas to work in Australia without being subject to their skilled occupation list. Again, this is more than Australia has ever offered any other country in a free trade agreement before.
The Trade and Agriculture Commission concluded that this deal does not undermine the UK's domestic protections in relation to animal or plant life or health, animal welfare, and environmental protections.
I would like to assure you that this deal does not compromise our high standards. The deal does not create any new permissions for imports from Australia and so, for
instance, hormone-treated beef will remain banned. All imported food and drink products continue to have to comply with our import requirements and the UK’s independent food regulators – the Food Standards Agency and Food Standards Scotland – ensure they meet our high standards.
Thank you again for taking the time to contact me.