AU-UK Free Trade Agreement

The South Australian Business Chamber Today — 20 January, 2021

On 17th December 2021 the Australia-UK (AU-UK) Free Trade Agreement was signed. This is the first new FTA that the UK has undertaken in the post-Brexit era. This FTA is important to Australia because the UK is Australia’s second largest foreign investor, third largest services trading and fifth largest goods trading partner. The UK is also the second largest destination for Australian foreign investment.
The UK and Australian Governments have sought to achieve a robust and comprehensive FTA which is mutually beneficial to businesses and sets a ​“gold standard” for 21st Century Free Trade. Along with the significant tariff reductions, the positive outcomes relating to mobility of people, digital trade and investments will have far-reaching impacts across many businesses and sectors.
The summary of key outcomes (when the agreement comes into action):

• Tariffs will be removed on 99% of goods ($9.2 billion by value) from Australia to the UK 
• Two-way trade will be easier in financial and professional services 
• Investment rules will be liberalised to enable greater capital flow both ways 
• Digital products will benefit from less restrictions and physical trade will be digitally enabled 
• Mobility rules simpler for business, give greater youth flexibility, and focus on future initiatives favouring innovation 
• Strategic innovation trade dialogue committed for ongoing updates and to keep FTA current Summary of Key Outcomes (when the agreement comes into force)

A summary of the terms of the agreement can be found here. The Australian British Chamber of Commerce would like to understand how this agreement affects your business. There is a short survey available where business owners can share their insights into the value of the FTA.

Take the survey here: AUKFTA Survey (sur​vey​mon​key​.com)