Australia, Britain pact free trade deal to agreement

Listen to this Article Now

June 21st, 2021

 By: Norvisi Mawunyegah

Following exit from European Union, U. K aims in expanding its business cycle across the world asearlier deals with countries including Japan and Canada were built on existing agreements struck by the EU. Britain and Australia announced their new shape of free trade deal June15 2021.Removing tariffs on a wide range of goods. The deal is to lift exports of traditional British products such as Scotch whisky, while boosting imports of lamb and wine from Australia.

 As it would help reduce barriers to trade in financial and other services, while hoping to join the trans-Pacific trade partnership, which would open the door to increased trade throughout the Asia-Pacific region.

British Prime Minister Boris Johnson and Australian counterpart Scott Morison met to discuss and highlight benefits of each country in the new pact outside his Dowing street office.

“This is an ambitious free trade agreement, ″ Morrison told reporters. “This is not a standard cookie-cutter agreement. This is an agreement with great ambition for both countries. ″

“The ultimate test of this trade deal will be whether it contributes to moving farming across the world onto a more sustainable footing, or whether it instead undermines U.K. farming and merely exports the environmental and animal welfare impact of the food we eat,” National Farmers Union President Minette Batters said in a statement.

Johnson defended the deal, saying tariff-free agricultural imports would be capped for 15 years to protect U.K. farmers. The government also said it would seek to increase agricultural exports to Asia and the Pacific.

“I want everybody to understand that this is a sensitive sector for both sides and we’ve got a deal that runs over 15 years and contains the strongest possible provisions for animal welfare, ″ Johnson said. “But I think it is a good deal, and I think it’s one that will benefit British farmers and British consumers as well. ″

While the debate over agricultural products has garnered most of the attention during negotiations over the free-trade deal, the provisions governing professional services may have a bigger impact on the British economy. Australia imported 5.4 billion pounds’ worth of services from the U.K. last year, making it the 10th largest market for Britain’s service industry. Services account for about 80% of the U.K. economy.

“It is encouraging to see services recognized in the (Free Trade Agreement,) and going forward we are confident there will be continued momentum to strengthen ties in financial and professional services specifically,” said Catherine McGuinness, policy chair for the City of London Corp., which represents the U.K. financial services industry.