The UK and Australia say they have agreed to “the vast majority” of a free trade agreement.
After talks on Friday in London the two said they intended to sign an agreement in June.
“Both countries are confident that the remaining issues will be resolved, and they will now step in immediately to agree on the remaining details in order to reach a legal agreement,” the joint statement said.
Strengthening Australia-UK Relationship
It is estimated that the deal could add £ 500m ($ 694m) to UK GDP in the long run.
The final day of talks between UK Secretary of Trade Liz Truss and Australian Trade Minister Dan Tehan ended in London without an agreement but both sides will spend the next few weeks resolving outstanding issues in the agreement.
Ms Truss said the trade agreement between the two countries “would help us emerge stronger from the COVID pandemic, and strengthen the relationship between the two democratic countries with a strong belief in freedom, trade and equality”.
Once agreed upon, the UK-Australia free trade agreement will be one of the first post-Brexit trading agreements negotiated with the UK that is not a “rollover deal”, a replica of a trading arrangement earlier negotiated on the UK’s behalf by the European Union.
The UK entered into a trade agreement with Japan in October 2020.
What is a free trade agreement?
The free trade agreement aims to promote trade – usually in goods but occasionally in services – by making it cheaper. This is usually achieved by reducing or subtracting prices – taxes or levies levied by the government on cross-border trade
Trade agreements also aim to remove estimates – which are limits on the amount of goods that can be sold.
Trading can be made and easier if countries have similar rules, such as the color of the wires in the plugs. The closer the rules are, the less likely the goods need to be considered.
