In 2021, the UK negotiated a Free Trade Agreement (FTA) with Australia. It was the first FTA the UK had negotiated since leaving the EU.
Australia is the sixth largest country in the world by area. With 96% internet penetration Australia is the 18th most connected country in the world and holds huge opportunity for importers.
The deal was expected to increase UK trade with Australia by 53% and boost the UK economy by £2.3 billion. To reach this goal, this FTA focuses on removing tariffs and reducing barriers to trade, and in turn introducing opportunities for UK businesses.
Since signing this deal, the UK has also signed a deal with New Zealand, and a digital economy agreement with Singapore. These 3 deals together have helped the UK to pave their way towards joining the CPTPP deal.
Benefits for UK businesses
- Goods classified as UK or Australian origin benefit from zero trade tariffs
- UK businesses benefit from reduced tariffs on imported materials, without losing access to preferential tariffs when exporting the finished goods
- Upon arrival in Australia, exported goods benefit from enhanced customs rules include rapid clearance of goods from customs within 48 hours
- Shippers can apply to receive a decision on tariff classification and product origin in advance of shipment
- Commitment to implementing single trade windows to make the process simpler and cut red tape
Rules of origin
Rules of Origin as essential in any trade deal. They determine in which country a product was sourced or made and helps to ensure customs authorities apply lower duties correctly, so businesses are able to benefit from them.
The origin requirements in the UK-Australia trade deal are simpler than other trade agreements, making it easier for UK businesses to qualify for zero tariffs on goods originating or processed only partly in the UK. This FTA requires that at least 40% of the value of the product must be locally sourced to benefit from the preferential treatment.
There are essentially three pathways for determining whether your products meet the rules of origin criteria under this deal:
The product must be
- Wholly obtained in Australia or UK
- Produced in Australia or UK exclusively from products originating from Australia or UK
- Produced in Australia or UK incorporating non-originating materials and meeting the Regional Value Content requirement and Product Specific Rules
Data protection
This FTA includes a dedicated digital chapter, which ensures that data can freely flow between the UK and Australia while guaranteeing that both parties maintain their own data protection regulations. This will build confidence for businesses that their data and intellectual property will be protected while trading. This deal also means UK businesses wont face the costs of setting up servers and storing data in Australia.
Gain access to our webinar and guide
We have unpacked the UK–Australia trade agreement and explained what it means for exporters in practical terms. If you're currently exporting to Australia or want support expanding into this market, our simplified UK-Australia guide and expert webinar provide guidance on business opportunities and how to take advantage of the customs changes.
Fill out the form below to receive a link to watch the full webinar and have access to a guide that covers all the key things you need to know about the UK-Australia trade deal.
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