How Does the AU-UK FTA Affect Your Business?

An agreement on free trade between Australia and the United Kingdom has been signed, and the countries claim it would help consumers and businesses in both countries. The UK government predicted that eliminating tariffs on all of the country’s exports would generate an extra £10.4 billion in trade.

Dan Tehan, Australia’s Minister for Trade, has described the agreement as a historic arrangement and a true free-trade agreement. Everyone’s a winner. Consequently, Australia has also hailed the agreement, the nation’s second-largest trade agreement with another country.

The Effects of the AU-UK FTA on Your Business 

As a result of the agreement, Australia’s tariffs on 99 percent of its exports are eliminated, making it simpler for Australians to live and work in the United Kingdom. It will also help increase the sales of Australian products such as wine, beef, and sugar. Due to current political tensions, China, Australia’s largest export market, has imposed a ban on the sale of certain products.

A free trade agreement is intended to foster trade—usually in products and services on occasion—by making it more affordable. Tariffs, levies, or charges assessed by governments on products traded across international boundaries are often reduced or eliminated to accomplish this.

Tariffs and quotas, which are constraints on the number of products that may be exchanged, are also intended to be eliminated through trade agreements. Trade may also be made easier if all nations adhere to the same set of norms, such as the color of wires in plugs, when it comes to certain items. The more closely the regulations are adhered to, the less likely items will need to be verified for compliance.

Reap the Benefits

Given that both governments believe that the agreement would be beneficial to both countries, you may be able to make use of it to your advantage. If you are involved in any of the businesses listed above, now is your opportunity to enjoy the rewards.