The Australia-United Kingdom Free Trade Agreement entered into force one year ago with new data showing a sharp increase in exports of some key agricultural commodities.
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The A-UKFTA is considered a gold-standard FTA because it eliminates tariffs on over 99% of Australian goods exports to the UK and has provided Australian producers and agricultural exporters the best access to the region since the 1970's.
Trade Minister Don Farrell said free and open global trade has never been more important as the impacts of localised geopolitical strife ripples around the world and a growing number of nation's turn inward with protectionist policies.
"Our trade agreement with the United Kingdom has ushered in a new era in our economic relationship with one of our oldest friends," he said.
"This trade agreement, along with other trade agreements we have in place around the world, are a major contributor to our economy.
"We are an island nation, trade supports one in four Australian jobs and 31 per cent of Australia's GDP. The importance of trade to Australia cannot be overstated."
By the numbers, Australian goods exports to the UK were valued at $5b overall since the agreement was activated on May 31, 2023.
In the first ten months since the deal was implemented (June 2023-March 2024):
- Beef exports up 429 per cent, compared to the year before, to $51.8m
- Sheep meat exports up 19pc to $100.1m
- Lamb export volumes up 52pc
- Fruit exports up 291pc to $1.5m
- Chocolate exports up 43pc to $5.2m
- Honey exports up 73pc to $3m
- Nut exports (almonds and macadamias) up 60pc to $2.1m
The A-UKFTA deal immediately eliminated all tariffs on wine, most fruit and vegetables and seafood, short and medium-grain rice, honey, olive oil and nuts. Duty-free transitional quotas were established for beef, sheep meat, sugar, wheat and meslin, barley, dairy, including cheese and butter, and long grain and broken rice.
There will be no quota limitations and tariffs will be completely eliminated on agricultural exports once the deal is fully implemented by 2033.
Meanwhile, Agriculture, Fisheries and Forestry Minister Murray Watt has revealed an increase in premium beef and lamb exports to the UK had been complemented by healthy figures with other key trading partners between July 2022 and March 31 this year.
Mr Watt said this included strong market growth across Southeast Asia, along with 88 million tonnes of sheepmeat to China and 20m/t to Malaysia and 24m/t tonnes of lamb to South Korea and 20m/t to Papua New Guinea, according to ABARES.
"Meanwhile, we've exported over $1 million worth of sheepmeat to India for the first time ever since the elimination of India's 30 per cent tariff on sheepmeat imports. On top of this, we've exported 79 million tonnes of beef to Indonesia. These are incredible figures," he said.
Industry stakeholders recently said that while the A-UKFTA is widely considered one of the best trade deals the beef industry has struck a lack of cattle supply and strong competition from other global buyers has held back the potential.
The A-UKFTA also establishes enhanced cooperation on key regulatory issues, including biosecurity, animal welfare and antimicrobial resistance.
Improved market access to an otherwise premium and highly protected UK market gives Australian farmers more opportunities to provide sustainable, high-quality agricultural produce to British consumers and a strong competitive advantage over other trading partners.
However, Australian farmers will be wiser as to how European agricultural policies might impact their operations following elections in the United Kingdom and European Union in coming weeks.
The two main elements of concern potential impact of these plebiscites on trade and market access and the rolling out of EU agriculture policies around the sustainable use of pesticides and fertilisers, imports and emissions reduction, including the EU Nature Restoration Law and deforestation.
The A-UKFTA was signed on 17 December 2021.
Australian agriculture, forestry and fisheries exports to the UK increased by $225 million from 2019-20 to $868 million in 2022-23.
Mr Farrell said the A-UKFTA had also bolstered the economic relationship between the two nations, with two-way trade also increasing by 36pc to almost $12b.
One of these was a deal with Victoria's Allume Energy now delivering rooftop solar technology to apartment buildings in the UK.
"The Albanese Government is striving to unlock more trade opportunities for Australian businesses, exporters, farmers and producers seeking to diversify into new markets," Mr Farrell said.
"This trade agreement is driving down cost of living pressures not only through the reduction of tariffs, but also through technology like SolShare."
Among industrial goods, exports of medical devices (implants) are up 769pc to $106.8m, motor vehicle parts, particularly road tyres, up 99pc to $37.5m and aluminium up 88pc to $20.5m.
Meanwhile, Mr Watt said Australian Bureau of Statistics figures shows that last quarter Australia had the highest lamb slaughter numbers on record, at 6,935,700 head.
The data also shows that the January-March quarter broke production records for lamb at 167,263 tonnes, up 8pc on the previous quarter and 48pc last year.
