UK and Australia sign free trade agreement

Tariff rate quotas (TRQs) will be set on beef and mutton imports, according to a special report by Sarah Baker, Strategic Thinking Manager at the UK Agricultural and Horticultural Development Board (AHDB). These tariffs are set at 35,000 tons for beef and 25,000 tons for mutton, which will increase in regular annual increments over 10 years to 110,000 tons for beef and 75,000 tons for mutton by the 10th year of the agreement.

Any item in excess of this quantity will be subject to UK Most Favored Nation Rates (MFN).

Baker said pork, poultry and eggs are not included in the deal. This means that pork exports from Australia will be subject to UK MFN tariffs. Australia is a net importer of pork and the UK is still able to export pork to Australia duty-free, as it is at present.

Between Years 10 and 15, the agreement will have product-specific safety measures that will, in effect, increase duty-free imports of beef to 170,000t and mutton to 125,000t by 15, with a 20 percent tariff on any imports in excess of this amount, she said.

With regard to animal welfare, the UK Free Trade Agreement was the first to include a non-regression clause. This provision ensures that neither party can deviate from current animal welfare standards in order to lower the price for the other party.

"The complex process to be carried out will include a three-month public scrutiny period, a Trade and Agriculture Commission (TAC) review, and then a governmental and parliamentary process, meaning the agreement is unlikely to come into effect before the second half of 2023." Baker notes.