"Landmark" trade deal makes it easier for young Brits to work in Australia
But there is criticism surrounding its impact on the economy
Last updated 17th Dec 2021
A new deal between Australia and the UK will reportedly make it easier for British 18-35 year olds to work Down Under.
The deal, which is the first to be negotiated from scratch since Brexit, was finalised at a virtual ceremony after being announced by prime ministers Boris Johnson and Scott Morrison in June.
Business groups welcomed the agreement, which is set to give UK firms guaranteed access to bid for an additional £10bn worth of Australian public sector contracts per year.
The deal also allows 18-35 year olds to work and travel to the country for up to three years at a time, removing previous visa conditions.
Service suppliers including architects, scientists, researchers, lawyers and accountants will have access to visas to work in Australia without being subjected to its changing skilled occupation list.
Officials say the deal will also remove tariffs on all UK exports, while potentially making Australian products like Jacob's Creek wine, Tim Tams and surfboards cheaper for Brits.
The Department for International Trade says the deal is expected to increase trade with Australia by 53% and boost the economy by £2.3bn.
But, official estimates suggest that the deal would only boost gross domestic product (GDP) by between 0.01% and 0.02%, partly because Australia only accounts for 1.7% of UK exports and 0.7% of imports.
Critics have therefore scrutinised the deal's potential to add economic growth, and that in the long run it could have an impact on British farmers and the commitment to tackling climate change.
International Trade Secretary Anne-Marie Trevelyan, who virtually signed the deal last night (Thursday 16 December), said:
"Our UK-Australia trade deal is a landmark moment in the historic and vital relationship between our two commonwealth nations.
"This agreement is tailored to the UK's strengths, and delivers for businesses, families, and consumers in every part of the UK - helping us to level up. We will continue to work together in addressing shared challenges in global trade, climate change and technological changes in the years ahead."
Shadow international trade secretary, Nick Thomas-Symonds, said Labour supported a free-trade deal, but would carefully scrutinise it:
"Notable from the outset is that the Government 'list of benefits' contains no mention of climate targets or the impact of the removal of import tariffs on UK agriculture," he said.
Frances O'Grady, general secretary of the Trades Union Congress, said the deal "poses a threat to working people while contributing almost nothing to our economy" because there was "no effective means to enforce fundamental labour rights" or protect migrant workers from exploitation.