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The United Kingdom and Australia have agreed on the broad terms of a free trade agreement, which is expected to become a model for Britain’s post-Brexit business policy.
Although farmers of the two countries have expressed concerns about the content of the agreement, Prime Ministers Boris Johnson and Scott Morrison will announce the agreement in principle on Tuesday.
British farmers are afraid Concessions that allow tariff-free and quota-free imports of Australian beef, lamb and sugar will seriously damage the domestic agricultural sector. They are also worried about Australia’s welfare standards, including the use of hormones by some beef producers.
At the same time, in Australia, farmers have warned that the proposal to exempt British backpackers from having to work on farms when renewing visas will exacerbate labor shortages and disrupt the industry.
Johnson and Morrison negotiate Broad terms of the agreement Officials told the Financial Times to have dinner at Downing Street on Monday night to make an official announcement.
A spokesman for Australian Trade Minister Dantham said on Tuesday: “The two prime ministers met in London overnight and resolved outstanding issues related to the free trade agreement.”
“Their agreement is a victory for employment and business [and] Free trade, and emphasized what two free democracies can achieve when they cooperate. “
If the trade agreement can be signed before the end of the year, it will mark the first large-scale bilateral agreement negotiated entirely by the United Kingdom since the United Kingdom left the European Union in January 2020. Japan with Norway Build on existing arrangements negotiated when the United Kingdom was a member of the European Union.
Associate Professor Mark Melatos of the University of Sydney said that the Australian agreement is of great significance to the United Kingdom, but Double-edged sword.
“On the one hand, this shows that the UK can conclude a bilateral trade agreement after Brexit, even with a very close friend Australia. This is important to political optics,” he said.
“On the other hand, this deal sets a precedent for a potentially more complex deal that the UK will negotiate later. Any concessions given to Australia now will become the benchmark for future negotiations with the United States, the European Union, etc.
The country’s largest beef exporter, Australian Agricultural Corporation, predicts that Beef exports increased tenfold If a zero-tariff agreement is reached, it will be against the United Kingdom.
However, Australian farmers objected to Britain’s request to cancel the requirement that British backpackers work on farms for at least 88 days to extend their working holiday visas.
Australian Agriculture Minister David Littleproud said on Tuesday that Canberra will introduce a mechanism to replace the approximately 10,000 British backpackers working in the Australian agricultural sector if the trade agreement requires it.
The government estimates that the free trade agreement with Australia will increase GDP by 0.01-0.02% within 15 years, or between 200 million and 500 million pounds higher than 2018 levels.
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