Boris Johnson hails ‘new dawn’ in ties as Britain and Australia seal trade pact
- The Australia deal is expected to boost the size of the UK economy by 0.02 per cent over 15 years
- PM Scott Morrison has been encouraging exporters to diversify into more markets after tensions with largest-trading partner China spilled into trade reprisals
The main elements of the pact were finalised at a dinner between Johnson and Australian Prime Minister Scott Morrison on Monday night, 10 Downing Street said in a statement.
A final agreement in principle will be published in the coming days, the UK government said.
The Australia deal is expected to boost the size of the UK economy by 0.02 per cent over 15 years. Its completion is a political boost to Johnson’s post-Brexit agenda, although there may be a backlash from farmers concerned over opening up access to the British market.
The agreement marks the first deal with a major ally that goes beyond rolling over a pre-existing EU trade relationship. Australia is the UK’s 20th-largest trading partner globally, and trade with Australia made up 1.2 per cent of Britain’s total in 2020.
The agreement will cut tariffs on products like Scotch whisky, clothing and cars. It will also reduce levies on agricultural products, a point of controversy that had sparked a backlash from Britain’s farming sector.