Boris Johnson`s Free Trade Agreement with Australia: A Closer Look

As the United Kingdom looks to establish new trade agreements following its departure from the European Union, Prime Minister Boris Johnson has set his sights on Australia. Negotiations for a free trade agreement (FTA) between the two countries have been ongoing since 2020, with talks expected to conclude soon.

So, what would a Boris Johnson-led free trade agreement mean for the UK and Australia? Here are some key points to consider.

1. Increased trade

One of the main benefits of a free trade agreement is the removal of tariffs and other trade barriers. This would make it easier and cheaper for UK and Australian businesses to trade with one another, increasing trade between the countries. The UK and Australia already have a strong trading relationship, with bilateral trade worth £18.9 billion in 2019.

2. Opportunities for UK exporters

An FTA with Australia could open up new opportunities for UK exporters, particularly in sectors such as agriculture, food and drink, and services. The Australian market is already open to UK goods and services, but a free trade agreement would provide greater certainty and stability for UK businesses looking to expand into the Australian market.

3. Concerns for UK farmers

However, not everyone is in favour of a free trade agreement with Australia. UK farmers, in particular, have expressed concerns that a flood of cheap imports from Australia could undermine their livelihoods. The UK government has said it will put measures in place to protect vulnerable sectors, but the details of these measures are not yet clear.

4. Challenges for Australia

While an FTA with the UK would offer benefits for Australia, such as increased access to the UK market, there are also challenges to consider. One of the main challenges is the distance between the two countries, which could make logistics and supply chain management more difficult.

5. Environmental considerations

Finally, there are concerns about the environmental impact of increased trade between the UK and Australia. Australia has been criticised for its environmental policies and for its reliance on fossil fuels. Some UK politicians and environmental groups have called for any FTA with Australia to include commitments to tackle climate change and to protect biodiversity.

In conclusion, a free trade agreement between the UK and Australia could offer benefits for both countries, but there are also challenges and concerns that need to be addressed. As negotiations continue, it will be important for both sides to consider the long-term impact of any agreement on their economies, industries, and environments.