UK-Australia Trade Deal – How does it affect the GBPAUD pair
The United Kingdom announced on Tuesday that it had signed a historic trade agreement after Brexit with Australia.
It is the first agreement London has received and is not just renewing or adapting those that exist between the EU and other countries, the Downing Street statement said.
British Prime Minister Boris Johnson and his Australian counterpart Scott Morrison agreed on the main components of the agreement during the talks in London on Monday, Downing Street confirmed, and the text of the final agreement will be published in the coming days.
“Today marks a new dawn in Britain’s relationship with Australia, underpinned by our shared history and shared values,” Johnson said in a statement.
The agreement means that iconic British products such as cars, Scotch whiskey, biscuits, and ceramics will be cheaper to sell in Australia, but that British farmers will be protected by import-free restrictions for 15 years, using tariff quotas and other safeguards. The trade deal allows British citizens under the age of 35 to travel and work more freely in Australia.
Australian Minister of Trade Dan Tehan said that the agreement is crucial for opening new jobs, companies, free trade, and emphasizing what the two liberal democracies can achieve by working together, Tehan added.
Britain’s main opposition Labor party opposed the agreement and described it as a “sell-off” by the Conservative government. The claim is that the agreement is not suitable for British farmers because it allows Australian colleagues immediate and unlimited non-tariff access to the British market. The remark is that, Instead of using the opportunity of the first British trade agreement after Brexit to create jobs in every sector, encourage our economic recovery and raise standards around the world, the government did the opposite with this agreement on agriculture, said the Secretary of the Labor Shadow for International Trade. British farmers fear that they will not compete with cheap imports from Australia, which has different rules on animal welfare and environmental protection than the UK.
