Australian farmers, whisky drinkers and young people looking to work overseas are the biggest winners in the nation’s historic free trade deal with the UK.
It was designed to boost trade relations between the two nations by $1.3billion (£700million) and the UK economy by $915million (£500million) each year, and marks Britain’s first major deal since leaving the European Union.
‘I said we would wait for the right deal, and I think we’ve got the right deal between the UK and Australia,’ Mr Morrison said after sealing the deal with his British counterpart.
‘Our economies are stronger by these agreements. This is the most comprehensive and ambitious agreement that Australia has concluded.’
Major changes include abolishing tariffs on imported cars, whisky, machinery, wine, confectionary, medical drugs and a range of other products.
Mr Johnson joked that the deal meant ‘you give us Tim Tams and we give you Penguins, you give us Vegemite and we give you Marmite, we give you Burberry and Mackintoshes and you give us RM Williams Japaras’.
Here, Daily Mail Australia takes a look at some of the biggest winners and losers in the landmark trade agreement.
Pictured: UK Prime Minister Boris Johnson and Australian Prime Minister Scott Morrison pose with a hamper full of Australian and British goods in the garden of 10 Downing Street
Pictured: Britain’s Prime Minister Boris Johnson speaks next to Australia’s Prime Minister Scott Morrison in the garden of 10 Downing Street in London
The deal will make it easier for people under the age of 35 to live and work overseas.
Young UK nationals are currently forced to carry out three months of work on a rural property if they want to stay in Australia for a second year on a working holiday visa.
The requirement will be scrapped for British backpackers under the new scheme, and Australians will have the same rights to work in the UK for three years.
The deal will make it easier for people under the age of 35 to live and work overseas. Pictured: Backpackers in Sydney in March this year
It is has not yet been decided if Britons who have already used a working holiday visa will be able to re-apply and benefit from the extended working rights.
Mr Morrison said there would be no limit on the number of young people who would be able to move between the two nations.
‘There is a great opportunity for young people from both the UK and Australia to move and operate in different countries.
‘That builds capacity, in both countries, with that easy engagement,’ he said in London on Tuesday.
Australians will have the same rights to work in the UK for three years. Pictured: Tourists drinking in London
Sheep, Cow and Rice Farmers
In a huge win for Aussie cow and sheep farmers, the trade deal will liberalise Australian imports of beef, lamb, cheese and sugar into the UK, which became free to set its own trade policy after the Brexit process ended in January.
Tariffs on beef and lamb, which are as high as 80 per cent, will be removed after 10 years unless there is a surge in exports in which case they will remain for a further five years.
The tariff-free quota of beef will rise from 35,000 tonnes to 110,000 tonnes and the quota for lamb will increase from 25,000 tonnes to 75,000 tonnes.
Rice tariffs will be eliminated straight away, dairy tariffs brought down over five years and sugar tariffs also phased out gradually.
The trade deal will liberalise Australian imports of beef, lamb, cheese and sugar into the UK (pictured: Australian sheep ready for export)
Mr Johnson said the deal was ‘good news for the agricultural sector on both sides’.
‘We’ve had to negotiate very hard. I want everybody to understand that this is a sensitive sector for both sides. And we’ve got a deal that runs over 15 years,’ he said.
Mr Morrison said the deal was a huge win for Aussie farmers who are trying to diversify exports amid trade struggles with China, its largest trading partner by far.
Beijing has blocked Australian seafood, beef, barley and wine after the government called for an inquiry into the origins of Covid-19 last year, as well as imposing crippling tarriffs.
‘This provides more opportunities, and greater resilience for Australia’s exporters, all around the world,’ Mr Morrison said.
Mr Morrison said the deal was a huge win for Aussie farmers who are trying to diversify exports amid trade struggles with China. Pictured: A farmer looking at crops
Mr Johnson said people in the UK could look forward to paying less for ‘Australian favourites like Jacob’s Creek and Hardys wines, swimwear and confectionery’.
Australia will also be able to import cars, whisky, machinery and medical drugs and other products without the existing five per cent tariff.
Industry groups said the UK exported 20,000 cars to Australia in 2019 and the country was the eighth-largest market by value for Scotch whisky.
The text of the agreement has yet to be finalised and the parliaments of both countries will need to approve it before it takes hold.
Australia will be able to import cars, whisky, machinery and medical drugs and other products without the existing five per cent tariff. Pictured: Women shopping in Melbourne
Fruit and Vegetable Farmers
The move will have a huge impact on Australian farmers who are dependent on 10,000 British backpackers a year to pick fruit and vegetables, but a new agriculture visa, allowing British farmers to work in Australia, will help offset the impact.
The change comes after a shocking new report seen by Daily Mail Australia showed the widespread exploitation of casual fruit and vegetable pickers in Australia, with some working up to 20 hours a day and for as little as $1 an hour.
Under Australian law, farmers do not have to pay the minimum wage to piece-rate workers, who instead get paid for the amount of fruit they pick.
Farmers say the best pickers can earn well above the minimum wage and argue the system is needed to make sure workers are not bludging on the job – but unions say it leads to exploitation and want a minimum hourly rate instead.
Mr Littleproud said on Monday that farmers and leaders will ‘have to think differently’ about labour supplies and remove UK backpackers from the scheme.
The move will have a huge impact on Australian farmers who are dependent on 10,000 British backpackers a year to pick fruit and vegetables. Pictured: A fruit picker in Australia
Under Australian law, farmers do not have to pay the minimum wage to piece-rate workers, who instead get paid for the amount of fruit they pick. Pictured: An orange farm in regional NSW
Scottish Trade Minister Ivan McKee tweeted that he was due to be briefed about the deal by the UK government along with ministers from Wales and Northern Ireland on Tuesday morning ‘but our call has been put back until much later because we were told ‘not enough of the deal is nailed down’.
Business Council of Australia CEO Jennifer Westacott said the ‘record-setting’ deal was a huge win after Australian exporters were effectively locked out of the UK market for almost 50 years.
‘Australia is going to the front of the pack, set to become the UK’s most ambitious post-Brexit trade partner,’ she said in a statement.
After the announcement, Mr Morrison – who flew to the UK to attend the G7 summit – went to visit the Queen at Windsor Castle before flying to Paris to hold talks with President Emmanuel Macron.
What’s in the historic free trade deal?
– Brits can get three-year Working Holiday Visas up until age of 35
– Rule mandating farm work will be scrapped
– Aussies can also work in the UK for three years
– Deal could boost Australian economy by $1.3billion each year
– Gives businesses more opportunities to sell abroad after China imposed tariffs
– UK agreed to eventually eliminate agriculture tariffs in win for Aussie farmers
– This will allow Aussie beef, lamb, cheese and sugar to enter the UK tariff-free
– But there are fears the changes will see a loss of 10,000 farm workers in Australia annually
– Australia will also scrap tariffs on British goods including whiskey
– Tariffs on British cars, machinery, tractors and pharmaceuticals will also be scrapped