The United Kingdom is one of Australia’s major trading partners, with two-way goods trade worth $10 billion in 2022 and two-way services trade worth over $11 billion in 2021-22.

As part of the A-UKFTA:

• From May 31, over 99 per cent of Australian products can enter the UK duty free. These include key exports such as wine, short and medium grain rice, sugar, honey, nuts, olive oil and food supplements.
• UK tariffs on Australian industrial goods, such as auto parts, electrical equipment and fashion items are now eliminated.
• Australian agricultural products, including beef and sheep meat, sugar and dairy products, will have duty free transitional quotas, with eventual elimination of all tariffs.
• For Australian consumers, tariffs on 98 per cent of UK imports to Australia are now eliminated, with the remainder removed within six years.

Worker movement

The (A-UKFTA) also has implications for Australia’s Working Holiday Maker (WHM) program and the UK’s Youth Mobility Scheme (YMS), designed to improve the mobility of skilled workers and young people in both directions.

For UK passport holders who apply for Australia’s Working Holiday visa, the new arrangements will be:

• From 1 July 2023, UK passport holders will be able to apply for a Working Holiday visa between the ages of 18 and 35 years inclusive. This is a five-year increase from the current maximum age of 30 years inclusive.
• From 1 July 2024, UK passport holders will be eligible to be granted Working Holiday visas up to a total of three years without having to meet any specified work requirements.

Similarly, for Australian passport holders who apply for the UK’s YMS, from 31 January 2024 Australian passport holders will:

• be able to apply for a YMS visa between the ages of 18 and 35 years inclusive. This is a five-year increase from the current maximum age of 30 years inclusive; and
• extend their YMS visa for a third year if they choose.

Minister for Trade and Tourism Senator Don Farrell said: “The Australia-UK Free Trade Agreement will not only deliver significant benefits to Australia’s economy and strengthen an already close relationship with the UK, but also increase opportunities for young Australians and UK citizens to live and work in each country.”

Mr Farrell also said this week he “will travel to Belgium to engage in negotiations on a trade agreement with the European Union, and then onto France to advocate for Australia’s interests in the rules-based multilateral trading system.”

Victorian Chamber’s international services

The Victorian Chamber Global Consulting team is keen to support members on their export journey. The Chamber delivers international services through essential knowledge and industry contacts for doing business overseas.

We can provide ATA carnets, export documents, trade certificates, and help to grow your business in international markets. We also offer tailored migration and visa services to members.

For more information, please contact our International Business Adviser, Eddie Zhao, on 03 8662 5234 or email ezhao@victorianchamber.com.au