UK - Australia FTA welcomed by Demie & Company Ltd

The UK - Australia Free Trade Agreement (FTA) is a bilateral trade agreement entered into by the governments of the United Kingdom and Australia on 15 March 2021. It creates the largest free trade area ever seen in the Asia-Pacific region.

The agreement builds on the economic integration between Australia and the UK since the Brexit vote in 2016. Since then, both countries have been establishing a closer trade relationship.

The agreement helps reduce the cost of living in both countries and create job opportunities.

It provides tariff-free access to goods and services, while helping businesses navigate through the regulations more efficiently.

The agreement includes provisions on data flows, technology cooperation, safeguards, dispute resolution and access to government procurement contracts.

The agreement also boosts research collaboration between universities, institutions and corporations, and creates a framework for new bilateral investment and capital flows and will promote growth in the countries in the next decades.

The UK-Australia Free Trade Agreement (FTA) has opened up new pathways for people to migrate between both countries.

The agreement establishes a number of pathways through which people can move between both nations, including extending the UK’s Tier 5 Youth Mobility Scheme to Australians, providing reciprocal access to the Australian and UK working holidaymaker systems, and offering a new ‘superyacht crew’ visa! Brits aged 18 to 35 will also be able to travel and work in Australia for up to 3 years at a time.

The agreement also provides more opportunities for skilled workers to move between both countries, establishing a new 12-month ‘Temporary Work Skilled’ visa and allowing UK citizens to work and stay in Australia for up to six months in eligible sectors (such as manufacturing and construction).

Finally, the FTA provides for the ending of the Higher Education Sector visa for international students, instead replacing it with a new Temporary Graduate visa which allows people to remain in Australia for up to four years from the date of completion of their studies. The visa also allows for graduate/DPhil awarded students to move between certain occupations in different work areas.

In summary, the UK-Australia FTA offers more pathways to both British and Australian citizens looking to move between the two countries, whether it is for vocational experience, travel, or longer-term migration.

The UK-Australia Free Trade Agreement, once it is implemented, is expected to have a positive impact on the UK's GDP. According to the UK government, the deal is estimated to boost UK GDP by £1.3 billion over the next 15 years.

While the deal has been ratified by both the UK and Australian parliaments, it's set to come into force early this year, providing a New Year boost for UK/AU trade in 2023.

We have read through the FTA guidance in detail. Our team applauds the commitment (if enforced) that in addition to the minimised paperwork associated with the process, will guarantee that the manufactured goods going through customs will be released within 48 hours of arrival should all requirements have been met. This provides manufacturers with complex value chains the assurance they need to create and export their products quickly and efficiently.

Businesses wanting to export goods to Australia have the option to receive a legally binding decision, in advance, from the customs authorities in regard to their product's tariff classification and origin all within 90 days.

Ibsa, from Demie & Company explaons that utilising the advance ruling guarantee grants a competitive advantage to British exporters by providing them with the security and the ability to react quickly and decisively to all order requests and market planning activities.