The Australian Government has reached an agreement in principle with the United Kingdom Government on a Free Trade Agreement (FTA).

Member for Baker Tony Pasin said today that farmers and agricultural workers in Barker were big winners in the Australia-UK Free Trade Agreement (FTA).

“In my electorate of Barker there are more people per capita engaged in food manufacturing than in any other electorate in Australia.”

“The historic Australia-UK free trade deal will strengthen our economy by delivering more jobs and business opportunities to Australians, especially in the manufacturing sector.”

The Coalition Government had secured tariff free access to the UK’s 66 million customers for Australian meat, sheepmeat, dairy, wine, rice and sugar.

“Farmers in Barker will be happy with this deal,” Mr Pasin said.

“Our Government has negotiated for our local producers to be more attractive to new customers which will support jobs and businesses in Barker.”

“We produce high-quality and price competitive produce in Barker and this FTA will give our local products tariff free access to the UK.” Mr Pasin said.

Under the FTA Agreement in Principle:

  • Tariffs on Australian wine and short and medium grain milled rice will be eliminated when the agreement enters into force.
  • Beef tariffs will be eliminated after ten years. During the transition period, Australia will have immediate access to a duty-free quota of 35,000 tonnes, rising in equal instalments to 110,000 tonnes in year 10. In the subsequent five years a safeguard will apply on beef imports exceeding a further volume threshold rising in equal instalments to 170,000 tonnes, levying a tariff safeguard duty of 20 per cent for the rest of the calendar year.
  • Sheep meat tariffs will be eliminated after ten years. During the transition period, Australia will have immediate access to a duty-free quota of 25,000 tonnes, rising in equal instalments to 75,000 tonnes in year 10. In the subsequent five years a safeguard will apply on sheep meat imports exceeding a further volume threshold rising in equal instalments to 125,000 tonnes, levying a tariff safeguard duty of 20 per cent for the rest of the calendar year.
  • Sugar tariffs will be eliminated over eight years. During the transition period, Australia will have immediate access to a duty-free quota of 80,000 tonnes, rising by 20,000 tonnes each year.
  • Dairy tariffs will be eliminated over five years. During the transition period, Australia will have immediate access to a duty-free quota for cheese of 24,000 tonnes, rising in equal instalments to 48,000 tonnes in year five. Australia will also have immediate access to a duty-free quota for non-cheese dairy of 20,000 tonnes. There will be a further duty-free transitional quota for butter of 5,500 tonnes rising to 11,500 tonnes in year five.

The FTA will improve working holiday opportunities for youth in both countries. Eligibility to participate will be raised from 30 to 35, stays allowed up to three years, and people will have more freedom to choose where they work.

Mr Pasin said UK FTA would be the most comprehensive and liberal agreement Australia had signed, outside of our partnership with New Zealand.

“Our Government worked very closely with the agriculture sector when negotiating this FTA to ensure the best deal possible for our farmers,” Mr Pasin said.

“There is still much work to do, on what is a complex legal document, but this agreement is a win for jobs, businesses, free trade and highlights what two liberal democracies can achieve while working together,” Mr Pasin said.

ENDS