Australian farmers are set for big gains from the newly-struck Australia-UK trade agreement after the UK farm lobby warned British Prime Minister Boris Johnson that Australian farming producers may flood UK’s market with exports.
Dan Tehan, Australia’s Trade Minister, worked closely with the UK’s Foreign Secretary to finalise the historic agreement and was on hand or a 'virtual ceremony' in Adelaide during the Ashes test match for the formal signing of the deal:
Australian farming bodies universally endorsed the new agreement, stating that exciting opportunities will arise for Australian producers.
As a result of the deal, tariffs on various products such as beef, lamb and dairy will be drastically scaled back.
Minister Tehan spoke with Flow in June during the delicate stage of negotiations of the Free Trade Agreement:
It is believed the agreement will unlock $19.6 billion of additional trade between Australia and the UK.
Reports out of England suggest The House of Commons' international trade committee will scrutinise the free trade deal, after complaints surfaced that it may under-deliver in relation to benefits that British government ministers had hoped for.
The agreement's significance is underscored by being the first free trade deal struck by the UK since leaving the European Union – restoring British hopes that more free trade negotiations. New Zealand was hot on Australia's heels for the historic first trade deal, while the UK is exploring joining broader pacts to deleverage its reliance on the neighbouring EU.
The age limit for working holidays for both Brits and Aussies looking to spend extended periods visiting abroad will also be lifted to 35 in a further boost to the economic prospects of both nations. The 'British backpacker' is expected to be a boost for Australia's farming industries finding creative ways to get through the pandemic without workers coming from overseas.