On 15th July 2020, the United Kingdom and Australia formally committed to negotiating a Free Trade Agreement (FTA). The agreement promises to eliminate tariffs and quotas on goods traded between the two countries, as well as opening up opportunities for greater cooperation on trade-related issues.
But what does this mean for millennials and other younger generations that will live under the implications of the recent Australia-United Kingdom FTA? From improved investment opportunities to mutual recognition for Australian and UK lawyers, here’s a detailed breakdown.
Greater Opportunities for Trade and Investment
The FTA between the UK and Australia creates new opportunities for bilateral trade and investment. For Australian businesses, this includes expanded access to the UK market of 66 million consumers, while for UK businesses, this includes improved access to Australia’s market of 25 million consumers. The FTA also provides a framework for future cooperation on trade-related issues, such as e-commerce and sanitary and phytosanitary measures.
Reduced Cost of Trade
The FTA between the UK and Australia eliminates tariffs on all goods traded between the two countries. This will result in a reduction in the cost of trade for businesses and consumers. In addition, the FTA eliminates quotas on all goods traded between the two countries, so this will allow businesses to access greater volumes of inputs at a lower cost, making them more competitive in global markets.
Enhanced Access to Services
The FTA between the UK and Australia provides enhanced access to each other’s markets for services providers. This includes improved access for financial services providers, lawyers, greater certainty for investors, and expanded opportunities for collaboration on research and development activities.
Improved Regulatory Cooperation
The FTA between the UK and Australia creates a forum for regulatory cooperation on trade-related issues, which will allow businesses to have a greater say in how trade regulations are developed and implemented, making it easier for them to comply with these regulations.
Positive implications for Brits and Australians alike
The recent Australia-United Kingdom Free Trade Agreement has implications that are positive for citizens and businesses in both countries. The agreement creates new opportunities for trade and investment, reduces the cost of trade, enhances access to services, and improves regulatory cooperation – these implications provide greater opportunities to participate in the global economy.