Primary producers and traders will significantly benefit from new market access opportunities, as the Albanese Government's Australia-United Kingdom Free Trade Agreement (A-UKFTA) comes into force today.
The gold-standard agreement will drive increased trade and economic growth, with tariffs removed on over 99 percent of our $10 billion two-way merchandise trade with the UK (2022). For some agricultural products like beef, sheep meat, dairy and sugar, Australia will have access to expanding tariff quota volumes - within 10 years these tariff quotas will be eliminated completely.
Minister for Agriculture, Fisheries and Forestry, Murray Watt welcomed the announcement and said the FTA provides significant benefits to the agriculture sector.
"From today, Australian farmers will enjoy duty-free market access for a range of goods including beef, sheep meat, wine, sugar, dairy, grains, horticulture, and seafood exports," Minister Watt said.
"The agreement is one of the most comprehensive, innovative, and ambitious FTAs Australia has signed with any trading partner-and it will provide a foundation for greater profits for Australian producers.
"Tariffs on goods such as wine, short and medium grain rice, honey, olive oil and nuts will be eliminated immediately and duty-free transitional quotas will be established for beef, sheep meat, wheat, barley, sugar, and dairy, providing instant benefits for Australian farming communities.
"The FTA creates faster customs clearance times while maintaining our world-leading biosecurity measures which ensure Australia is protected from harmful diseases, pests, and weeds.
"This is a huge achievement and a great win for Australian agriculture and our farmers."
Australia's agricultural trade with the UK in 2021-22 was worth $868 million with key exports including wine ($449M), canola seeds ($150M), lamb and mutton ($135M), beef and veal ($15M), chickpeas ($12M), wool ($12M) and cocoa and chocolate ($9M).
Total agricultural exports to the UK reached an all-time high in 2021-2022. Australian agriculture, forestry and fisheries exports to the UK increased by $225 million since 2019-20 ($643M to $868M).
