London: British Prime Minister Boris Johnson and his Australian counterpart Scott Morrison have agreed on a historic free trade agreement (FTA) that will make it cheaper for the UK to sell its cars and Scotch whisky Down Under and remove barriers for business, Downing Street said on Tuesday.
The main elements of the deal were agreed by the two leaders at a meeting in Downing Street on Monday night, with a final Agreement in Principle to be published in the coming days.
Downing Street said the FTA eliminates tariffs on UK goods and boosts jobs and businesses, in the first major trade deal negotiated from scratch by the Johnson-led government since Britain left the European Union (EU) last year and was free to negotiate its own agreements.
An FTA with Australia is also dubbed as a gateway into the fast-growing Indo-Pacific region, which covers India.
Today marks a new dawn in the UK's relationship with Australia, underpinned by our shared history and common values, said Johnson.
Our new free-trade agreement opens fantastic opportunities for British businesses and consumers, as well as young people wanting the chance to work and live on the other side of the world. This is global Britain at its best looking outwards and striking deals that deepen our alliances and help ensure every part of the country builds back better from the pandemic, he said.
According to UK trade officials, the new FTA means iconic British products like cars, Scotch whisky, biscuits and ceramics will be cheaper to sell into Australia, boosting UK industries that employ 3.5 million people across the country.
The UK-Australia trade relationship was worth 13.9 billion pounds last year and is set to grow under the deal, Downing Street said.
With reference to the farming industry that had been concerned about greater Australian imports, the government said that British farmers will be protected by a cap on tariff-free imports for 15 years, using tariff-rate quotas and other safeguards.
Agricultural producers will also be supported to increase their exports overseas, including to new markets in the Indo-Pacific.