Free trade agreement between Australia and UK

First major trade deal negotiated by the UK government since leaving the European Union (EU)

First major trade deal negotiated by the UK government since leaving the European Union

Officials from Australia and the UK this week agreed to main elements of a free trade agreement—the first major trade deal negotiated by the UK government since leaving the European Union (EU).

According to a release from the Australian government, Australian consumers are set to benefit from cheaper products being imported from the UK, with all tariffs to be eliminated within five years, and tariffs on cars, whisky, and the UK’s other main exports eliminated immediately.

Approximately 99% of Australian goods, including wine and short-and-medium-grain milled rice, would enter the UK duty-free once the agreement enters into force.

In addition, beef and sheep meat tariffs in the UK would be eliminated after 10 years, sugar tariffs eliminated over eight years, and dairy tariffs would be eliminated over five years.

According to a release from the UK government, the free trade agreement would:

  • Eliminate tariffs on all UK goods
  • Eliminate tariffs on Australian goods
  • Allow certain UK products to be sold for less into Australia
  • Protect UK farmers with a cap on tariff-free imports for 15 years, using tariff rate quotas and other safeguards
  • Allow UK citizens under the age of 35 years to travel and work in Australia more freely

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.