Lyla Lindsey
Australia has signed several trade agreements with various countries in recent years. The Australia-United Kingdom Free Trade Agreement (AUKFTA) was signed in December 2021 and came into force in May 2023. The Australia-United States Free Trade Agreement (AUSFTA) was signed in 2004 and came into effect in 2005. Australia is also a member of the Regional Comprehensive Economic Partnership Agreement (RCEP), which includes ten countries and came into effect in 2022. In addition, Australia has signed trade agreements with New Zealand, ASEAN nations, and other countries through the Indo-Pacific Economic Framework for Prosperity (IPEF). The country's recent trade agreement is yet to be known.
| Characteristics | Values |
|---|---|
| Country | United Kingdom |
| Date of Agreement | 31 May 2023 |
| Previous Date of Agreement | 17 December 2021 |
| Negotiation Start Date | 2020 |
| Negotiation Duration | Almost a year |
| Type of Agreement | Free Trade Agreement |
| Other Names for the Agreement | A-UKFTA, Australia–United Kingdom Free Trade Agreement |
| Previous Trade Value | £13.9 billion |
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What You'll Learn
Australia-United States Free Trade Agreement (AUSFTA)
The Australia–United States Free Trade Agreement (AUSFTA) is a preferential trade agreement between Australia and the United States, modelled on the North American Free Trade Agreement (NAFTA). The AUSFTA was signed on 18 May 2004 and came into effect on 1 January 2005.
The agreement provides for a Joint Committee to meet annually or as otherwise agreed to supervise the implementation of AUSFTA and review the trade relationship between the parties. The United States is the largest and most significant investor in Australia, with investments in Australia standing at $1.17 trillion in 2023. The United States is also Australia's largest foreign investment destination, with investments in the US standing at $1.20 trillion in 2023. Two-way investment has more than tripled since the Agreement came into force.
Upon AUSFTA's entry into force, more than 97 per cent of Australia's non-agricultural exports to the United States (excluding textiles and clothing) became duty-free, and two-thirds of agricultural tariff lines went to zero. Under AUSFTA, Australian companies also have access to the federal government procurement market in the United States and the government procurement markets of 31 US states. Since AUSFTA came into force in 2005, bilateral goods and services trade between Australia and the United States has more than doubled.
The agriculture section of the agreement outlines the system for eliminating most tariffs for agricultural products being traded between the two countries. It also agrees to eliminate export subsidies when the good in question is being exported to one of the two parties. Special tariff-rate quotas are part of the agreement, allowing Australian producers to export increasing amounts of these products free of duty to the United States during the tariff elimination period. The section also sets up a Committee on Agriculture with the purpose of providing "a formal opportunity for Australia and the United States to discuss a wide range of agricultural issues relevant to the Agreement, including trade promotion activities; barriers to trade; and consultation on the range of export competition issues."
The agreement also acknowledges the rights and obligations of Australia and the United States to each other with respect to combating barriers to trade. These rights and obligations were laid out by the WTO Agreement on Technical Barriers to Trade, which deals with standards, regulations, and conformity assessments, among other things.
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ASEAN-Australia-New Zealand (AANZFTA)
Australia has signed several trade agreements with various countries and regions in recent years. One of the most significant is the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA). This agreement was established between ASEAN Member States (Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam), Australia, and New Zealand. AANZFTA entered into force on 1 January 2010 for eight countries: Australia, New Zealand, Brunei, Burma, Malaysia, the Philippines, Singapore, and Vietnam. Thailand, Laos, Cambodia, and Indonesia joined on later dates, with Indonesia being the last to join on 10 January 2012.
AANZFTA delivers extensive tariff reduction and greater certainty for service suppliers and investors. It has further liberalised market access for goods from New Zealand through Rules of Origin that allow for 'cumulation'. This means that New Zealand goods used in the manufacture of products in ASEAN countries or Australia are considered local content, making New Zealand products more attractive to businesses in the region. AANZFTA also provides improved opportunities and greater access for New Zealand service providers, particularly in the education sector. The agreement includes commitments to streamline and make more transparent the procedures for immigration applications and processes for businesspeople working in the ASEAN region.
AANZFTA has been upgraded twice since its implementation. The First Protocol to Amend the AANZFTA was adopted in 2015, and the Second Protocol came into force on 21 April 2025. The upgrade improves processes for traders to access the AANZFTA’s existing tariff preferences and provides new market access commitments and regulatory certainty for service providers. It ensures that New Zealand businesses can continue to grow the value of goods and services exports into ASEAN markets by streamlining the processing of exports across borders and improving conditions for trade in services and e-commerce.
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Australia-United Kingdom Free Trade Agreement (A-UKFTA)
The Australia-United Kingdom Free Trade Agreement (A-UKFTA) was signed on 17 December 2021, with the broad terms of the agreement being decided six months earlier after a year of negotiations. It was the first trade agreement signed by Britain since leaving the European Union that was negotiated completely anew. The agreement was ratified and brought into force by the UK Government on 11 May 2022.
The A-UKFTA is a significant deal for both countries, with Australia being a key member of the Asia Pacific Economic Cooperation (APEC) forum and the UK seeking to strengthen its trade relationships following Brexit. In 2020, trade between the two countries was valued at £13.9 billion. The deal is expected to increase trade and investment between the UK and Australia, with thousands more young people set to be eligible for a working visa.
However, the agreement has faced criticism, particularly from agricultural interests in the UK. There are concerns that the deal might weaken British restrictions on pesticide use by allowing the import of Australian crops grown under less stringent standards. For example, Britain permits the use of four organophosphates, while Australia allows 33. Critics worry that this could set a precedent for the UK to make similar concessions in trade deals with other large agricultural exporters.
Farmers in the UK have also expressed worries that prices will be undercut by cheaper Australian imports. Australian beef and sheep meat production are significantly higher than in the UK, and British farmers have sought safeguards to protect their industry. In response to these concerns, the UK Government negotiated a 15-year cap on tariff-free imports.
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Indo-Pacific Economic Framework for Prosperity (IPEF)
Australia joined the Indo-Pacific Economic Framework for Prosperity (IPEF) in May 2022. The framework was launched by U.S. President Joe Biden and includes 14 participating founding member nations in the Indo-Pacific region, with an open invitation for other countries to join. The 14 members represent 40% of global GDP and 28% of global goods and services trade.
The IPEF is an economic initiative that seeks to advance resilience, sustainability, inclusiveness, economic growth, fairness, and competitiveness for its members. It aims to contribute to cooperation, stability, prosperity, development, and peace within the region. The framework focuses on four key pillars: Trade, Supply Chains, Clean Energy, and Fair Economy.
IPEF members will engage on a wide range of issues and pursue high-standard rules in the digital economy, including standards on cross-border data flows and data localization. The United States has deep and expanding economic ties with the IPEF partners, with foreign direct investment in the region totaling over $969 billion in 2020, nearly doubling in the last decade.
The IPEF has been described as part of the Biden administration's efforts to counter growing Chinese influence in the region. It is intended to be a precursor for later negotiations and does not include a uniform lowering of tariffs.
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Pacific Agreement on Closer Economic Relations (PACER)
The Pacific Agreement on Closer Economic Relations (PACER) Plus is a regional development-centred trade agreement. It is a landmark trade and development agreement that will raise living standards, create jobs, and increase exports in Pacific Island countries. At the same time, it will also lower barriers and provide greater certainty for New Zealand businesses.
PACER Plus establishes a common set of trading rules for the region, making it easier for businesses to trade within the Pacific and beyond. It includes a Regional Trade Facilitation Programme to improve the trading capacity of Pacific Island countries. This provides technical assistance at a regional level through the Pacific Islands Forum, the Pacific Community (SPC), and the Oceania Customs Organisation on several key issues regarding customs facilitation, quarantine procedures, and standards and conformance assessments.
The Agreement has established legal protections for domestic and foreign investors, supporting the increased flow of direct foreign investment to help meet capital needs. It also provides improved temporary visa access for skilled workers, specialists, and businesspeople conducting business or delivering services in the region.
PACER Plus is the free trade agreement between the Forum Island Countries, Australia, and New Zealand. It was opened for signature in Nuku'alofa, Tonga, in June 2017 and entered into force on 13 December 2020. New Zealand, Australia, Samoa, Tuvalu, Kiribati, Tonga, the Solomon Islands, Niue, Vanuatu, and the Cook Islands are parties to the Agreement. Nauru has signed the agreement but has not ratified it.
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Frequently asked questions
As of my knowledge cutoff date of 1 September 2023, Australia has not signed any trade agreements this week.
Australia signed the Australia-United Kingdom Free Trade Agreement (A-UKFTA) on 31 May 2023.
The A-UKFTA is a trade agreement between Australia and the United Kingdom.
The A-UKFTA was signed on 17 December 2021.
Australia is a part of several trade agreements, including the Australia-United States Free Trade Agreement (AUSFTA), the ASEAN-Australia-New Zealand (AANZFTA), and the Regional Comprehensive Economic Partnership Agreement (RCEP).
