Update: The UK’s trade deals with Australia and New Zealand came into effect on 31st May 2023 and are now live.
UK exporters are getting ready to enjoy the benefits of the UK’s new trading arrangement with Australia and New Zealand.
The first brand new free trade deals sealed by the UK government following Brexit, the agreements with both nations will see tariffs removed on thousands of goods as well as enhanced access for UK service providers to do business in the respective countries.
Following some final regulatory tweaking, it’s expected that both trade deals will go live at midnight on 31st May.
Both deals are expected to increase long-term bilateral traded by up to 59% whilst also enhancing investment opportunities and access to government contracts, producing tariff-free access to both markets for all British goods, flexibility on rules of origin, removal of UK import tariffs on the majority of goods from Australia and New Zealand, and more opportunities for UK professionals to work in both nations.
Read more: UK to join £11 trillion CPTPP trading bloc
Business and Trade Secretary, Kemi Badenoch, said on the deals’ impending launches that: “With these two deals the UK is using our status as an independent trading nation to tailor agreements to our country’s economic strengths. Alongside our recent conclusion of talks to join CPTPP, the government is forging a bold new future alongside the world’s most dynamic and fast-growing economies.
“Putting these trade deals into action will help create new opportunities for business, boosting wages and helping spur economic growth.”
UK exporters confident of future benefits
A small poll of 200 business leaders in the UK by the Institute of Export & International Trade found that 95% were confident they’d be able to benefit from both trade deals with nearly eight in 10 noting that reduced tariffs was a huge benefit.
However, half said that the biggest potential stumbling block will likely be the distance between the trading nations, whilst a lack of market knowledge of Australia, in particular, could be a hurdle.
If your business is looking to benefit from the new free trading agreements with Australia and New Zealand but aren’t sure where to start, then Go Exporting can help.
We can help to assess the global market potential for your company and products and pinpoint specific nations where the potential demand is highest.
Learn more about how we can help you make the right market entry decisions with the clarity of real market information here.