Australia, Britain Reach Free Trade Agreement | News | DW
The United Kingdom and Australia signed a free trade agreement on Tuesday following discussions between their respective prime ministers.
Australian Prime Minister Scott Morrison and his British counterpart Boris Johnson smoothed out their differences in bilateral talks at a Group of Seven (G7) meeting.
The deal was announced by Australian Trade Minister Dan Tehan. “Their deal is a victory for jobs, business, free trade – and highlights what two liberal democracies can achieve by working together,” Tehan said.
The minister added that the countries would make an official announcement on Tuesday in London.
“Today marks a new dawn in UK relations with Australia, supported by our shared history and common values,” Prime Minister Johnson said in a statement.
Details of the trade deal have not been revealed, but some estimates indicate that the deal could add more than $ 700 million (€ 576 million) to Britain’s long-term economic output.
However, some analysts have questioned the importance of the deal for an Asian-centric economy like Australia.
“This free trade agreement is more about symbolism than immediately tangible material benefits,” said Ben Wellings, senior lecturer in politics and international relations at Monash University in Australia.
Details of the deal will be scrutinized by British farmers, who fear they will be forced to close their doors if the deal removes tariffs on Australian lamb and beef.
A free trade deal with Australia was a top priority for the UK after Brexit, but negotiations dragged on for months. The UK has already concluded free trade agreements with countries in the European Economic Area, such as Norway and Iceland.
David Littleproud, Australia’s Minister of Agriculture, called the deal an “agreement in principle”. Littleproud said details of the deal were “deviated”.
“Our departments and the Commerce Department are working feverishly to ensure that an announcement can be made on time tonight so Australians see exactly what’s in this tentative agreement,” Littleproud said.
This is Australia’s 15th free trade agreement. The United Kingdom is Australia’s fifth largest trading partner, while Australia is Britain’s 19th.
am / nm (Reuters, AP)