Prospective Australia-United Kingdom Free Trade Agreement
Australia is committed to pursuing an ambitious and comprehensive Free Trade Agreement (FTA) with the United Kingdom of Great Britain and Northern Ireland (UK) that drives increased two-way trade in goods and services, economic growth and job creation.
The UK is Australia's seventh-largest trading partner, with two-way goods and services trade valued at $30.3 billion in 2018-19. Investment is also a cornerstone of our relationship, with the UK being the second-largest source of foreign direct investment in Australia, valued at $127 billion in 2019.
Australia and the UK established a Joint Trade Working Group (TWG) in September 2016 to scope out the parameters of a future, comprehensive free trade agreement (FTA) and exchange views on global trade policy issues and developments. Four formal meetings of the Australia–UK TWG have now been held. Working Group leads have maintained regular contact.
In December 2016, the Trade Sub-Committee of the Parliament's Joint Standing Committee on Foreign Affairs, Defence and Trade (JSCFADT) commenced an inquiry into Australia's trade and investment relationship with the United Kingdom. The Committee's final recommendations, along with the submissions it has received, will help to inform Australia's positions in future negotiations with the UK.
Key interests and benefits of an Australia-UK FTA
- A comprehensive, high-quality Australia-UK FTA would help to ensure our trade and investment relationship reaches its full potential.
- An Australia-UK FTA would remove barriers to trade in goods.
- An Australia-UK FTA could expand services linkages and investment ties.
- An Australia-UK FTA could modernise the rules governing trade in goods, services and investment between Australia and the UK. These new rules could better facilitate digital economy and innovation.