The talks held during the recent visit of the Australian Trade Minister to the UK have further moved the negotiations closer to a tariff-free, quota-free trade agreement between the UK and Australia.
The trade negotiation, which started in June 2020, is expected to reach an agreement in principle by June this year.
The UK exporters face tariffs on some consumer goods, but if the free trade agreement (FTA) is signed, it will help UK products – particularly apparels and footwear – competitive to Australian consumers.
Notably, as per DIT, Australia enjoys a most favoured nation tariff rate of 5 per cent on most of the textile and apparel products.
The UK already has strong trading links with Australia for apparels and textiles. The UK had exported £350 million of clothing to Australia in 2020.
More on the trade deal, William Bain, Trade Policy Adviser, British Retail Consortium (BRC), said that any move towards FTA with Australia will benefit consumers of both countries.
He added that even if tariff reductions are small, the deal could boost the choice and availability of products, as there may be a chapter on customs facilitation which may make the process simple.
There has always been a good demand for British fashion brands in Australia like Ted Baker, Ben Sherman and many others, and this FTA could go a long way in making British brands more popular in Australia.
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