Iconic British exports to benefit from trade deal with Australia 

World famous British food and drink, car, rail, and fashion industries are among those that could benefit from tariff-free trade with Australia.

Some of Britain’s most famous exports could enjoy major wins from a UK-Australia trade deal, the Department for International Trade has revealed this week.

UK negotiators are working to remove tariffs impacting our car, train, fashion, and food and drink industries, making it cheaper and easier to sell goods to Australia, supporting jobs and boosting the economy.

Both sides are hoping to strike an in-principle agreement by the time the Australian prime minister, Scott Morrison, meets with Boris Johnson in London next week.

Australian trade minister Dan Tehan said he was still hoping to reach an agreement but there were outstanding issues that needed resolving.

The Government’s latest research estimates that 6.5m jobs were supported by exports in 2016 and were generally higher paying, with wages in jobs directly and indirectly supported by exports around seven per cent higher than the national average.

A deal with Australia could be a boost to all parts of the country, supporting the 15,000 British businesses who already export £4.1 billion of goods to Australia.

Iconic brands like Mr Kipling, Cadbury’s Mini Rolls and Bradbury Cheese are already enjoyed by households across Australia, but are subject to tariffs of up to 20 per cent – these could be slashed under any trade deal.

The deal could also benefit the UK car industry by removing the current five per cent tariff on cars, which last year alone cost the sector an estimated £17 million in duties paid. Cheaper exports could also help support the 162,000 people estimated to be working in the automotive manufacturing sector, across more than 3,400 businesses.

Iconic British goods expected to be enjoyed more down under thanks to a five per cent tariff removal would also include:

UK chocolate and biscuit producers – Premier Foods make the two top cake brands in Australia, Mr Kipling and Cadbury’s, and would be boosted by the removal of the current tariff.

UK cheese exports to Australia currently face tariffs of up to 20 per cent. For example, East Midlands producer Bradbury Cheese estimate they could add around $1.5m to the nearly $3m of cheese it already sells to Australia with a tariff-free deal.

The UK rail industry, which was estimated by the 2018 Oxford Economics report to export £800 million in goods and services.

The removal of tariffs on trains and train parts will open the market for the industry and help UK businesses win contracts in Australia.

UK clothing sold in Australia also currently faces a tariff of up to five per cent.

International Trade Secretary Liz Truss said: “From our world-famous food and drink industry to our car and train manufacturers, we’re pushing to slash tariffs on iconic British exports.

“We know that export-led jobs are typically more productive and higher paying, supporting jobs across the country which will help us build back better from the pandemic.”

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Posted in Business, Exports, News.