The Australia-United Kingdom Free Trade Agreement (A-UKFTA) now offers access to the UK market that Australian agricultural producers have not seen in generations.
A key negotiating objective of the A-UKFTA was achieved with the agreement offering improved access for agricultural products in a market that had largely been closed off due to high tariffs on Australian farm exports since the UK joined the European Union in the early 1970s.
The A-UKFTA supports farmers by eliminating tariffs and removing red tape that slows trade down.
Australia exported around $795 million worth of agricultural goods to the UK in 2022.
Key Outcomes
- Immediate elimination of tariffs on goods such as wine, short and medium grain rice, honey, nuts, and olive oil
- Immediate access to duty free transitional quotas for key agriculture products, including beef and sheep meat, sugar and dairy, with eventual tariff elimination
- A reduction in costs and red tape by making it simpler for traders to prove the originating status of their goods
- Faster customs clearance timeframes providing greater certainty to exporters
- Transparent trade and investment rules so savings can be made on administrative costs when trading with the UK
- Australia ensured we can further support agriculture and agribusiness by outlining visa pathways to facilitate mobility for those involved in agricultural work
- A range of commitments to ensure technical barriers to trade do not discriminate or create unnecessary obstacles.
Beef
Beef is one of Australia's largest global agricultural goods export, worth $10.3 billion in 2022. Prior to the A-UKFTA, Australian beef exports to the UK faced duties as high as 12% + 254GBP/100 kg. The A-UKFTA significantly improved market access outcomes for Australian beef producers and exporters.
These include:
- 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 5 years (years 11-15 after entry into force) a product specific safeguard will be applied on beef imports exceeding a further volume threshold rising in equal instalments to 170,000 tonnes, levying a safeguard duty of 20 per cent for the rest of the calendar year
- out-of-quota tariffs will remain at most favoured nation (MFN) until year 10 and will then be eliminated.
Sheep and goat meat
Australia exported $4.9 billion of sheep and goat meat in 2022. Prior to the A-UKFTA, duties on Australian exports to the UK were as high as 12% + 260GBP/100kg.
Key A-UKFTA market access outcomes include:
- immediate access to a duty-free quota of 25,000 tonnes, rising in equal instalments to 75,000 tonnes in year 10 for Australian sheep meat
- in the subsequent 5 years (years 11-15 after entry into force) a product specific safeguard will be applied on sheep meat imports exceeding a further volume threshold rising in equal instalments to 125,000 tonnes, levying a safeguard duty of 20 per cent for the rest of the calendar year
- out-of-quota tariffs will remain at MFN until year 10 and then be eliminated.
Dairy products
Total Australian dairy products exports were valued at $3.3 billion in 2022. Key A-UKFTA market access outcomes for Australian dairy producers and exporters include:
- tariffs on dairy eliminated in equal instalments over 5 years
- for cheese, immediate access to a transitional duty-free quota starting at 24,000 tonnes and rising in equal instalments to 48,000 tonnes in year five
- for butter, immediate access to a transitional duty-free quota starting at 5,500 tonnes and rising to 11,500 tonnes in year five
- for other dairy products, immediate access to an annual duty-free quota of 20,000 tonnes for five years.
Rice
Over the three years to 2022, Australian rice exports averaged $164.5 million. Previously the applied tariffs in the UK for rice were as high as 121GBP/tonne.
Key A-UKFTA market access outcomes are:
- immediate tariff elimination on entry into force for short and medium-grain milled rice
- a permanent annual duty-free quota of 1,000 tonnes for long-grain milled rice
- tariffs on broken rice eliminated over 4 years, with immediate access to a duty-free transitional quota of 11,500 tonnes per year.
Sugar
Total Australian global exports of sugar were estimated to be valued at $2.2 billion in 2022. Prior to the A-UKFTA, the UK applied tariffs as high as 35GBP/100kg. A-UKFTA outcomes are:
- full elimination of tariffs over 8 years
- immediate access to a transitional duty-free quota, starting at of 80,000 tonnes and rising in equal instalments to 220,000 at year 8.
Wine
Total Australian wine exports were valued at $2.1 billion in 2022. Previously tariffs into the UK were as high as 26GBP/100 litres.
A-UK FTA eliminated tariffs on wine on entry into force, equating to a saving of around $37 million in customs duties each year1.
Wheat and barley
Australia is among the world's largest exporters of wheat and barley. In 2022, Australia exported $14.5 billion of wheat and $3.3 billion of barley. High tariffs of up to 79GBP/tonne hampered Australia's previous exports to the UK.
Key A-UKFTA market access outcomes are:
- full elimination of tariffs over 4 years
- immediate access for wheat to a duty-free quota of 80,000 tonnes per year
- immediate access for barley to a duty-free quota of 7,000 tonnes per year.
Horticulture
Horticulture contributed $4.7 billion to Australia's agricultural export income in 2022. Previously high tariffs on key agricultural commodities hamper Australia's market access to the UK.
Key A-UKFTA market access outcomes are:
- immediate elimination of tariffs on most fruits and vegetables, including tariffs on almonds, macadamias, and other nuts; avocados, cherries (except sour cherries); dried fruits, citrus fruits, carrots, and table grapes
- elimination of tariffs on other key interests over 3 years, including tariffs on apricots, nectarines, peaches, strawberries, asparagus, beans, tomatoes, apples (except cider apples) and pears (except perry pears).
- elimination of tariffs over 7 years for the remaining products.
Seafood
Total Australian seafood exports were valued at $1.2 billion in 2022. Key A-UKFTA market access outcomes are:
- immediate elimination of tariffs on most Australian seafood, including those on all finfish and the 12 per cent tariff on fresh and frozen rock lobster
- remaining tariffs eliminated over 3 years.
1Estimates based on 2022 trade.