ACCI chief executive Andrew McKellar said the deal would bring businesses in Australia and the UK closer.
The bilateral free trade agreement will mean that 99 per cent of tariffs on Australian goods being sent to the UK will be scrapped. It also allows British working holiday makers to return to Australia, which businesses hope will help alleviate the chronic skills shortage.
“Business has played an important role in the development of the Australia-United Kingdom trade deal and welcomes the opportunities this partnership provides,” Mr McKellar said.
“Australian businesses are set to reap the advantages of increased access to the UK market, and it’s 65 million consumers.
“When the agreement comes into effect, exporters are set to benefit from the abolition of 99 per cent of tariffs on Australian goods exported to the United Kingdom. These products are valued at approximately $9.2 billion.
“The deal also opens access for our service exports, including professional services is also of high value to our service-based economy.”
The UK-Australia trade deal is the first ‘from scratch’ UK trade agreement to be finalised since the UK left the European Union.
For UK exporters, the deal will eliminate most tariffs on their exports to Australia and unlock £10.4 billion of additional trade.
UK’s International Trade Secretary Anne-Marie Trevelyan said the deal will also help Australia access cutting-edge agreements in areas where Britain is a world leader, including in digital and technology, along with increased access to Australia for the UK’s powerhouse service sectors.
Ms Trevelyan said the deal gives UK and Australian firms guaranteed access to each other’s government procurement markets
“It will allow young people to work and travel in Australia for up to three years at a time, removing previous visa conditions,” she said.
“UK service suppliers including architects, scientists, researchers, lawyers and accountants will have access to visas to work in Australia without being subject to Australia’s skilled occupation list. This is more than Australia has ever offered any other country in a free trade agreement.
“UK businesses and professionals will have guaranteed certainty of access, helping to make long-term business decisions around the movement of personnel, bidding for and accepting new contracts, and advertising their services in Australia.”
However, Australian unions denounced the agreement, labelling it an “anti-worker” deal, because companies can look overseas for some roles without advertising for local workers first.
Australia will also allow up to 1,000 workers to come from the UK in the first year of a new “skills exchange” trial, with the Morrison government revealing the pledge as both countries signed an FTA.
