London signs Brexit trade agreement with Australia

It “shows what we can do as a sovereign trading nation”. Lis Truss, the British international trade minister who is a staunch supporter of Brexit, did not hide his satisfaction on Tuesday morning after the conclusion of a free trade agreement with Australia. The United Kingdom won for the first time since leaving the EU, which was not simply a renewal or adaptation of those signed by Brussels, and the country had benefited by then as a member of the Union.

The speech, which was widely acknowledged by Boris Johnson and his Australian envoy Scott Morrison at a dinner in London on Monday evening, will allow all British products to enter duty-free customs in Australia. It is yet to be formally signed by the end of the year. It benefits English cars and Scotch whiskey, which today has 5% customs duty and biscuits and pottery “made in the UK”.

Fee allocations

The agreement should enable 20% customs duty on Australian beef exports to the United Kingdom. This is of great concern to British farmers . They fear competition for low-cost production of Australian beef and lamb, which is subject to healthier regulations. To allow them to be repaired, the agreement provides a cap on Australian imports over a 15-year period “through tariff quotas and other protections”.

“The proportion of Australian meat that can come to the UK will be a very small fraction of their overall production,” UK Minister Michael Cove, who is in charge of coordinating government operations, added on Tuesday to assure the world. Agriculture. “We will maintain our high standards when it comes to things like hormonal beef and chlorinated (washed) chicken,” he added. The liberalization of cheese sales is also spreading over time.

0.01% to 0.02% of GDP

London is considering the deal with Australia to open the doors to the Trans-Pacific Trade Agreement (CPTPP)’s free trade area. Eleven countries in the United States and Asia have agreed to it, authorizing the United Kingdom to begin the process of joining. The agreement with Canberra includes a movement of people elements that will allow Britons under the age of 35 to travel and work freely in Australia.

In 2019, the UK was Australia’s fifth largest trading partner. Trade between the two countries was 13. 13.9 billion in 2020, an amount London promises, and is now expected to grow. Nevertheless, the government recognizes that the agreement should allow it to increase its GDP by 0.01 to 0.02 points in 15 years. Not enough to offset the impact of Brexit, which will cost 4.9 points growth over the next fifteen years.