Australia, Britain reach free trade deal to cut many tariffs

Australia, Britain reach free trade deal to cut many tariffs

The UK-Australia trade relationship was worth £13.9bn ($19.6bn) past year and is set to grow under the deal.

"This is global Britain at its best - looking outwards and striking deals that deepen our alliances and help ensure every part of the country builds back better from the pandemic", he added in a statement.

Scotland exported £126 million of beverages to Australia in 2020, and the deal now removes tariffs of up to 5 per cent on Scotch whisky.

Britain's Prime Minister Boris Johnson greets Australia's Prime Minister Scott Morrison outside 10 Downing Street, in London, Tuesday, June 15, 2021.

"Australian consumers will benefit from cheaper products, with all tariffs eliminated within five years, and tariffs on cars, whisky, and the UK's other main exports eliminated immediately".

Britain is Australia's eighth-largest trading partner, with two-way trade worth A$26.9 billion ($20.7 billion).

The Queen, 95, welcomed Australian prime minister Scott Morrison to Windsor Castle, soon after a new trade deal was struck between his nation and the UK. The government also said it would seek to increase agricultural exports to Asia and the Pacific.

The deal, which is forecasted to boost U.K. GDP by a modest 0.02 percent over 15 years, has been a subject of concern for the agricultural sector, with British farmers warning that too much liberalization could set a unsafe precedent that would harm their industry. This will help Scotch whisky distillers continue to expand exports to Australia, which have nearly doubled over the last decade, making Australia our eighth largest market by value.

Auto manufacturers in the midlands and north of England will see tariffs of up to 5% cut, boosting demand for their exports.

The Queen and other members of the Royal Family had hosted a drinks reception for world leaders at the summit, but as Australia is not in the G7, it was not invited to that part of the day.

The agreement paves the way for us to join the Trans-Pacific Partnership, a 9 trillion pounds free trade area home to some of the biggest consumer markets of the present and future.

The deal's ambitious commitments on market access for services professionals, cutting-edge digital provisions and reduced barriers to investment will benefit the UK's service sector.

Johnson and Morrison, who reached the in-principle agreement over dinner on Monday, are set to formally announce the deal Tuesday morning.

According to the United Kingdom government, Scottish drink exports to Australia, presumably mostly whisky, topped £126 million ($230 million), while the United Kingdom as a whole exported £5.4 billion ($9.9 billion) worth of services.

An FTA with Australia is also dubbed as a gateway into the fast-growing Indo-Pacific region, which covers India.

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