THE SQUIZ

Way back in 2021, when our PM was Scott Morrison and the UK’s was Boris Johnson, Australia and the UK signed a free trade agreement – which is finally coming into effect today. The deal means that tariffs on 99% of Aussie exports into the UK will disappear, while British companies will get an inside track when bidding to win some Australian government contracts. The deal also means that Britons and Aussies aged 18-35yo will soon be able to work/travel in the other country for 3 years – for yonks it’s been a 2-year visa for under-30yos. It’s terrific for wandering young Britons who love Tim Tams, or young Aussies who love… warm beer? But less enthusiasm for the new arrangements is coming from other sectors.

WHAT’S THE PROBLEM?

Britain’s farmers are particularly worried about an influx of Aussie beef. Before we get to that, a bit of a history lesson… Before 1973, the UK was the biggest global customer of Aussie farming exports – but that ended when they decided to join the European Union and trade barriers against Australia were put up. Fast-forward to the last couple of years, and Brexit saw farmers in the UK lose their free access to European markets. And now many are worried about what this deal with Oz might mean. But it’s about more than just ag – Trade Minister Don Farrell says the agreement will “open up new markets for our world-class goods and services” and “help revitalise local manufacturing”. But we’re not putting all our lovely eggs in the UK’s basket – Australia is currently negotiating a separate free trade agreement with the European Union. Also this week, we’re putting some work into doing more with South Korea… 

OOH WHAT’S HAPPENING THERE? 

Steady on… Oz already has a free trade agreement with South Korea – it was signed by the Abbott Government in 2014, and it cemented the nation as our 3rd-largest export market valued at $48.8 billion last financial year. Our relationship goals are now focused on security and defence, and Aussie Deputy PM/Defence Minister Richard Marles is in Seoul this week meeting with South Korea’s Defence Minister Lee Jong-sup. There are no concrete details yet, but Marles has mentioned the exchange of “defence science” as well as conducting joint military exercises with South Korea. He also said he plans to meet with his counterpart “​​a number of times over the next few months”. Sounds like a date…