Australia- UK Free Trade Agreement (AUKFTA)
The Australia-United Kingdom Free Trade Agreement officially came into effect on May 31, 2023, marking a significant milestone in the economic ties between these two nations.
Boosting Trade Relations
The United Kingdom stands as one of Australia's key trading partners, and the numbers speak for themselves. In 2022, the two countries engaged in a robust $10 billion worth of two-way goods trade. Thanks to this landmark agreement, over 99% of Australian products can now enter the UK market without incurring any duties or tariffs. Moreover, UK tariffs on Australian industrial goods have been completely eliminated. The agricultural sector also sees a positive shift, with products like beef, sheep meat, sugar, and dairy now enjoying duty-free transitional quotas, eventually leading to the elimination of all tariffs.
Strengthening Ties
Beyond the economic aspect, this agreement enhances the people-to-people connections between the two nations. Australian professionals now have access to the UK job market on par with their counterparts from the European Union, with the exception of the Republic of Ireland.
Facilitating Mobility
The agreement doesn't stop at trade—it also focuses on fostering mobility for skilled workers and young people in both directions. Starting from July 1, 2023, UK passport holders can apply for a Working Holiday visa between the ages of 18 and 35 years inclusive (up from the previous limit of 30). Additionally, beginning July 1, 2024, UK passport holders can obtain up to three separate Working Holiday visas without needing to meet specific work requirements.
Exemption from Labour Market Testing
A notable highlight of this agreement is the exemption of UK citizens (including UK Permanent Residents) from Labour Market Testing (LMT). LMT is a requirement for employers to demonstrate that they couldn't find a suitable Australian worker before sponsoring an overseas employee.
This free trade agreement is set to bring significant opportunities and benefits to both Australia and the United Kingdom, fostering economic growth and closer ties between the two nations.