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Next round of U.K.-Australia trade talks set for February

Economy
28 January 2021 13:51 (AEST)

The next stage of negotiations for a free trade agreement between Australia and Britain is expected to take place in February, according to a source familiar with the matter.

The U.K.’s International Trade Secretary Liz Truss and Australian Trade Minister Dan Tehan met last week to assess progress ahead of a fourth round of discussions, and the City AM newspaper reported on Wednesday that a deal could be reached as soon as March.

Britain’s talks with Australia are likely to wind up before similar negotiations with New Zealand and the United States take place.

The proposed trade deal is thought to extend free mobile roaming for British citizens travelling to Australia, opening the country up to U.K. telecommunications companies in the process.

Tariffs for a range of agricultural products going in both directions are also expected to be slashed, while Australia has been asked to drop other tariffs for some British manufacturing sectors, such as pottery makers.

In 2019, Britain’s trade with Australia in goods and services totalled approximately $25.37 billion.

The U.K. sees a deal with Australia as a key step on its way to joining a broader free trade agreement, known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which removes most tariffs between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Truss said last week that the U.K. intends to submit its application to join the bloc soon.

Since leaving the European Union late last year, Britain has been heavily preoccupied with seeking new trade arrangements around the world while at the same time managing a worsening COVID-19 crisis, which has so far claimed around 100,000 lives in the country and infected roughly 3.69 million people.

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