Update on Australia-UK Free Trade Agreement
04 November 2022
After much anticipation, the Australia-UK Free Trade Agreement (A-UK FTA), agreed in-principle in June 2021, was signed on 17 December 2021. There was initial political enthusiasm that the deal would be ratified and enter into force mid-2022 however the timeline has been amended due to a range of factors including the Australian federal election, the passing of the Queen and now the change of Prime Minister in the UK.
Work continues in the Australian and British parliaments on ratification:
- In Australia, the National Interest Analysis by the Joint Standing Committee on Treaties (JSCOT) is expected to table a report in mid-November before the deal can be ratified by the Australian parliament.
- In the UK, the implementing legislation (the Trade (Australia and New Zealand) Bill) is currently making its way through the House of Commons and House of Lords before it can be given Royal Assent and formally ratified.
Once both parties have notified that ratification is complete, the agreement will enter into force within 30 days – or on a mutually agreed date (ie. the timeline can be expedited).
The Australian red meat and livestock industry continues to advocate for entry into force during 2022 and Prime Minister Albanese has also called for fast tracked ratification of the A-UK FTA ‘to get it concluded before the end of this year.’
The deal will result in Australian beef and sheepmeat exports entering the UK under a tariff rate quota (TRQ) regime. Initial TRQ tonnages include 25,000 tonnes for sheepmeat and 35,000 tonnes for beef which will gradually increase over a 10-year transition period. Product within the TRQ amounts will enter tariff free. Whilst there will be no TRQ regime post year 10, a product specific safeguard provision will apply until the end of year 15, beyond which no product specific safeguards will apply.
