Australia-UK free trade agreement

The Australian government anticipates ratifying the free trade agreement in 2022.

The Australian government anticipates ratifying the free trade agreement in 2022.

Representatives of the governments of Australia and the United Kingdom on 17 December 2021 signed a free trade agreement.

According to a release from the Australian government, the key outcomes of the agreement include:

  • Exporters would benefit from immediate elimination of tariffs on over 99% of Australian goods exports to the UK, valued at approximately $9.2 billion*
  • Australian households and businesses would save approximately $200 million a year given that customs tariffs on UK imports into Australia, such as cars, whisky, confectionery, biscuits, and cosmetics would be phased out within five years.
  • Australian businesses would have a right to bid for a greater variety of UK government contracts in the procurement market.
  • UK businesses would be encouraged to invest in Australia under the “best practice investment rules” (including to set up regional headquarters in Australia to leverage the Australian network of free trade agreements).

The Australian government anticipates ratifying the free trade agreement in 2022.

*$=Australian dollar

 

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.