- Bill will ensure Government is ready to enter the two trade
agreements.
- UK businesses can grow and take advantage of greater access
into these markets.
- Both the Australia and New Zealand deals will remove tariffs
on 100 percent of UK goods exports, benefiting UK businesses.
BILL
EXPLANATORY NOTES
The UK government has today introduced a bill which will help to
bring into force its first independently negotiated Free Trade
Agreements in more than 50 years.
The UK signed the Australia Agreement in December and the New
Zealand Agreement in February. Together, they will deliver
benefits to people, businesses and communities throughout the
country and support the levelling-up agenda.
The UK-Australia Agreement is expected to increase trade by 53
percent, boost the economy by £2.3 billion and increase wages
each year in the long-run. The UK-New Zealand Agreement is
expected to increase trade by almost 60 percent and boost the
economy by £800 million.
International Trade Secretary said:
I am excited to see the UK implement its first ‘from scratch’
Free Trade Agreements in over 50 years and deliver on a key
Brexit benefit - having our own independent trade policy.
This Bill will enable us to export our world-class goods and
services and bring high-quality imports at reduced rates for
British customers.
Introducing this Bill is an important step in ratifying these
trade agreements so that UK businesses can begin benefiting and
expanding their trade with Australia and New Zealand as soon as
possible. To bring these agreements into force, the following
will have to happen:
-
Parliament must formally scrutinise the agreements under the
Constitutional Reform and Governance Act.
-
The Trade (Australia and New Zealand) Bill has to be agreed
by Parliament.
-
Necessary secondary legislation has to be passed by
Parliament to make the changes required to our procurement
regime to meet the terms of the Agreements.
-
Only once the steps above have been completed can these
agreements be ratified and brought into force.
In line with our commitment to transparency and scrutiny, the
government has:
-
Published the full text for both agreements as soon as they
were signed, along with full independently scrutinised impact
assessments.
-
Ensured the Trade and Agriculture Commission – a panel of
independent experts – has over three months to report on the
agreements. The Trade & Agriculture Commission’s report
on the UK-Australia Agreement was published on 13 April. The
Commission is due to report on the UK-New Zealand Agreement
in June.
International treaties are negotiated and then entered into force
by the government. Treaties do not always require legislation to
come into force, but on some occasions changes to domestic law
might be needed to implement a trade deal. For these agreements,
this Bill will change our rules on procurement which in turn will
widen access for UK suppliers to procurement opportunities in
Australia and New Zealand. The changes are needed to give
Australian and Kiwi suppliers rights to access the benefits of
the Agreements.
The new commitments in free trade agreements like these will not
affect the power the UK has to reform its domestic procurement
rules.
Both the UK-Australia and UK-New Zealand free trade agreements
include commitments to addressing climate change like
decarbonisation and increasing innovation in green sectors.
For the first time, 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 changing skilled occupation list. Britons aged 18 to
35 will also be able to travel and work in Australia with a
Working Holiday Maker Visa for up to three years.
The agreements include protections for the agriculture industry
and food and drink quality standards, with all imports needing to
comply with the UK’s food regulations.
