The free trade deal between Australia and the UK has one major exporter buzzing with excitement.
Queensland-based agribusiness Capilano – one of the largest suppliers of pure honey in the world – is hopeful of making some inroads under the agreement, which comes into force on Wednesday.
British High Commissioner Vicki Treadell on Tuesday handed over the UK’s diplomatic note confirming the completion of the UK’s domestic procedures for entry into force of the trade agreement.
Capilano Honey exports to 32 markets and the UK imports around 90 per cent of its honey and is one of the largest consumers of honey worldwide.
Company chief operating officer Ben McKee said Australian bees were healthier and Australian honey had a “clean and green” reputation in the global market.
“The success of honeybees in Australia is chiefly due to our unique native eucalypt forests, which provide pollen and nectar throughout the season, maximising hive health and nutrition,” Dr McKee said.
“Australia’s island existence and geographical isolation mean our honeybees survive without the complications of many of the honeybee diseases that require repeated pesticide and antibiotic treatments elsewhere in the world.”
As of Wednesday, more than 99 per cent of Australian products will enter the UK duty-free.
The UK is Australia’s 12th largest trading partner, with two-way goods trade worth $10 billion in 2022, and two-way services trade worth $4.4 billion in 2021/22.
But it is also Australia’s second-largest source of foreign direct investment, amounting to over $1 trillion in 2022.
Assistant Trade Minister Tim Ayres said the deal would provide more opportunity for exporters, firms and workers.
“They are one of our oldest friends of course, the United Kingdom, but this is a new chapter in the economic relationship and it means means new opportunities for Australian businesses,” he told ABC News Breakfast.
“It’s been broadly welcomed by the agriculture sector in particular as has been a big a big step forward … we keep working through the project of expanding Australia’s access to global markets.”
Australian producers of wine, beef, sheep meat, grains, rice, sugar, and dairy products will benefit from duty-free quotas or tariff elimination.
Manufactured products such as auto parts and electrical equipment, as well as cosmetic products will also receive a boost through the immediate elimination of UK tariffs.
British products including cars, whisky, confectionery, biscuits and cosmetics coming into Australia are expected to be cheaper.
And from January 31, more Australians will be able to apply for working holidays in the UK and stay for longer.
Trade Minister Don Farrell said it was a major step in diversifying trade.
“When trade flows freely, the benefits are felt across virtually all aspects of everyday life,” Senator Farrell said.
“More trade means more well-paying jobs, more national income, more opportunities for business and a lower cost of living.”
Australian Associated Press