UK and Australia Sign FTA... First Trade Agreement Since Brexit

Bloomberg: "It Will Symbolize the 'Post-Brexit'"

British Prime Minister Boris Johnson (right) and Australian Prime Minister Scott Morrison [Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] The United Kingdom and Australia are set to sign a Free Trade Agreement (FTA). This is notable as the first trade agreement the UK has made with a foreign country since its departure from the European Union (EU).

According to the Associated Press, Dan Tehan, Australia's Minister for Trade, stated on the 15th (local time) that UK Prime Minister Boris Johnson and Australian Prime Minister Scott Morrison held talks in London and reached an agreement to conclude the FTA.

Minister Tehan emphasized, "This agreement is a win in terms of jobs, industry, and trade, and clearly demonstrates what two liberal democracies can jointly achieve."

Under the agreement, both countries agreed to reduce tariffs in sectors such as whiskey, clothing, and automobiles. It was also reported that they agreed to reduce tariffs on agricultural products, an issue that had faced opposition from the UK agricultural sector.

The two prime ministers are expected to officially announce the agreement and disclose the detailed terms on the same day.

David Littleproud, Australia's Minister for Agriculture, appeared on local broadcast and described the agreement as "principled," noting that work to finalize the details is currently underway.

Bloomberg reported that the UK economy is expected to grow by 0.02% over the next 15 years as a result of this FTA.

Foreign media reported that Prime Minister Johnson is likely to pursue FTAs with New Zealand and the United States following this agreement.

Bloomberg analyzed that the FTA with Australia will serve as a key policy for the UK to prepare for the "post-Brexit" era and will be an important symbol of Johnson's "de-Europeanization" agenda.

Furthermore, Bloomberg evaluated that this agreement lays the groundwork for the UK to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a free trade system involving 11 countries including Australia, Japan, Singapore, and Malaysia.

Professor Gabriel Suder of Royal Melbourne Institute of Technology (RMIT) also assessed that this FTA is beneficial for both countries.

He particularly noted, "From the UK's perspective, this is an important agreement as it confirms a swift recovery from the shock of Brexit," adding, "Considering the usual FTA negotiation process, the one-year (short) negotiation period is very unusual."

Australia, meanwhile, is expected to benefit from this FTA as it seeks to diversify exports amid escalating trade tensions with China.

This content was produced with the assistance of AI translation services.