LEGISLATION for the Australia-United Kingdom Free Trade Agreement (Australia-UK FTA) was given Royal Assent in the British Parliament last month, thus paving the way for both countries to bring the pact into force.

The historic Australia-UK FTA removed tariffs on over 99 per cent of the $9.2 billion Australian goods exported to the UK annually and improves access to an important market for Australian farmers.

Negotiations for a free trade deal began in June 2020 with the broader terms agreed to in June 2021. The Agreement was signed by Wannon MP, Dan Thean, on December 17 later that year during his tenure as Minister for Trade, Tourism and Investment.

The deal represents the UK’s first new trade deal signed since Brexit and gives UK consumers the option of sustainable, high quality Australian produce on supermarket shelves to complement their existing home-grown options.

The National Farmers Federation (NFF) welcomed and applauded the Australian and UK governments for reaching the deal.

NFF chief executive, Tony Mahar said that it meaningfully reduced trade barriers at a time when many countries were choosing to step back from trade liberalisation, especially given Australia had among the lowest agricultural subsidies in the OECD.

“To survive and thrive, Australian farmers rely on open and fair access to export markets,” he said.

“The UK FTA sets a strong standard from which to continue negotiations with other markets, as Australia continues to provide an important voice for levelling the playing field for agricultural trade.”

Specific positive outcomes relevant to agriculture include:

•      Beef tariffs will be eliminated after 10 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 years.

•      Sheep meat tariffs will be eliminated after 10 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 years.

•      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. 

•      Australian dairy farmers will also have immediate access to a duty-free quota for non-cheese dairy of 20,000 tonnes.

•      Rice will receive immediate duty-free access for short and medium grain milled rice when the agreement enters in force.

Within two years of the Australia-UK FTA coming into force, Australia and the UK have agreed to put in place new arrangements under the Working Holiday Maker (WHM) program and Youth Mobility Scheme.

One major criticism of the Australia-UK FTA from farmers’ groups was the removal of the requirement for UK nationals on WHM visas to undertake ‘specified work’; e.g. work 88 days (or three months) on a farm.

Many producers relied on working holiday makers to provide temporary labour over the busy seasons on farm, and the requirement for visa holders to do three months’ work in agriculture had long been a great help in sourcing such labour.  

WHM visa holders can currently stay three years in Australia. This stay consists of three separate visas granted for 12 months each.

To be eligible for a second or third Working Holiday visa, applicants currently must show that they have done at least three or six months of ‘specified work’ - work that is undertaken in a ‘specified’ industry and area of Australia.

When the new Australia-UK FTA commences, UK passport holders will no longer have to meet this requirement when applying for a second or third Working Holiday visa.

Another change to come into effect under the Agreement will be the increased eligible age range for UK applicants for WHM visas, from between the ages of 18 and 30 up to 35 years inclusive.

The new arrangements for WHMs will start within two years on a date agreed between Australia and the UK.

Prime minister, Anthony Albanese said the Australian Government was determined to create more jobs in export industries and lower prices for Australian businesses and consumers.

“Our exporters are operating in an increasingly contested and unpredictable environment,” he said.

“The Australia-United Kingdom Free Trade Agreement is an unparalleled opportunity to deepen our trade with a top five global economy.”

Trade and Tourism minister, Don Farrell said the Australian Government wanted to bring the Australia-UK FTA into force as soon as possible.

We want Australian exporters, businesses, workers and consumers to reap the opportunities and benefits of more open trade with the United Kingdom.”

“Our economy is stronger when global trade flows freely and the Australian government is delivering on our commitment to strengthen and diversify our trading relationships.”

Mr Tehan said at the time of signing the Agreement, that it righted the wrongs of the past from when the UK turned to markets in the European Communities.

“(It) provides our agricultural producers with access to the UK market again and will enable them to compete on an equal footing with competitors, including the European Union,” he said.

“Our farmers will have improved access to more than 65 million UK consumers who value safe, sustainably produced products with the strong provenance Australia offers.”

“Barriers to Australian exports will (also) be removed across key products including wine, seafood, grains, fruit and vegetables, honey, nuts, short and medium grain milled rice and olive oil.”