Lord Offord: another key milestone (pic: Terry Murden)

A trade agreement with Australia, the first created ‘from scratch’ since the UK left the EU, will set new global standards, according to the Department for International Trade.

The deal was ‘agreed in principle’ by the Prime Minister Boris Johnson and his Australian counterpart Scott Morrison in London in June, and negotiators have now finalised all chapters of the agreement.

The final deal was signed in a virtual ceremony by International Trade Secretary Anne-Marie Trevelyan on Thursday night, and will now be laid in Parliament for a period of scrutiny.

The deal is expected to unlock £10.4 billion of additional trade and eliminate tariffs on 100% of UK exports.

The DIT said it is a deal “tailored for the UK economy with cutting-edge agreements in areas where Britain is a world leader, including in digital and tech, along with increased access to Australia for the UK’s powerhouse service sectors.”

• It will allow young people to work and travel in Australia for up to three years at a time, removing previous visa conditions.
• For the first time UK service suppliers including architects, scientists, researchers, lawyers and accountants will have access to visas to work in Australia without being subject to Australia’s changing skilled occupation list. This is more than Australia has ever offered any other country in a free trade agreement.
• The deal removes tariffs on all UK exports, making it cheaper to sell iconic products like cars, Scotch whisky and UK fashion to Australia, while making Australian favourites like Jacob’s Creek and Hardys wines, Tim Tams and surfboardsmore accessible for British consumers.

The deal is also a gateway into the fast-growing Indo-Pacific region and the DI says it will boost the UK’s bid to join CPTPP, one of the largest free trade areas in the world, covering £8.4 trillion of GDP and 11 Pacific nations from Australia to Mexico.  

Ms Trevelyan said:   “Our UK-Australia trade deal is a landmark moment in the historic and vital relationship between our two commonwealth nations.

“This agreement is tailored to the UK’s strengths, and delivers for businesses, families, and consumers in every part of the UK – helping us to level up. We will continue to work together in addressing shared challenges in global trade, climate change and technological changes in the years ahead.  

“Today we demonstrate what the UK can achieve as an agile, independent  sovereign trading nation. This is just the start as we get on the front foot and seize the seismic opportunities that await us on the world stage.” 

UK Government Minister for Scotland Malcolm Offord said: “This historic trade deal with Australia is great news for businesses and individuals across Scotland and the whole UK. It represents another key milestone as we secure global opportunities for British industries beyond the constraints of the EU.

“As Australia is the world’s eighth largest market for Scotch whisky, our world-renowned distilleries will reap the rewards of the removal of tariffs. Our flourishing financial services businesses and our innovative digital industry are also among the sectors set to receive a boost.

“We have also secured safeguard measures to protect our agriculture sector, helping Scottish farmers make the most of international opportunities while protecting our standards on animal welfare.”

William Bain, head of trade policy, at the British Chambers of Commerce, said:   “There are opportunities for exporters in a new speedier customs process, zero tariffs on the vast majority of UK exports, improved market access on services, free flow of data and generous provisions on labour mobility for under 35s for up to 3 years.  

“We will carefully examine the draft text of the trade agreement but look forward to it being in force by the middle of 2022.”