UK-Australia Free Trade Agreement

The UK government had announced the completion of two entirely new Free Trade Agreements, with Australia and New Zealand by the time of this meeting, and there has been the suggestion it may complete others including joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

The UK is a major manufacturing power in the world, with particular strengths in cars, engineering products and aerospace among others. That these no longer employ such large numbers predominantly reflects higher productivity, and has been seen in all developed countries.

This session of the Trade and Business Commission looked at the transition to a green economy, and the role of trade policy in this ahead of the COP26 summit in Glasgow, as these topics saw growing domestic and international attention.

Trade agreements are negotiated by national governments, though topics covered are likely to include those for which responsibility lies with devolved authorities. This is an issue faced across the world given that those topics extend far beyond tariff reduction and can see regulations bound by treaty. In the UK devolved government responsibilities affected are likely to include agriculture, services provision such as professional qualifications, and public procurement, but many more such as Scotland’s minimum alcohol pricing could be an issue.

The ability for the UK to reach its own trade agreements has been seen by many as a key benefit of Brexit. After replicating trade agreements with countries with whom the UK had trade deals by virtue of our EU membership, an ‘Agreement in Principle’ had at the time of this meeting been announced with Australia.