Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Trade and Tourism, Senator Farrell. On 31 May 2023 the Australia-United Kingdom Free Trade Agreement entered into force. According to the minister's media release to mark the occasion:

The Albanese Labor Government prioritised legislation in the Parliament to bring this trade deal into force in record time, delivering on our commitment to help businesses diversify their trade and help bring down the cost of living for Australians.

How will this free trade deal benefit Australian exporters, families and young people?

Don Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | Link to this | Hansard source

I thank Senator Sterle for his very good question. I know he's got a great interest in trade, particularly as he comes from Western Australia.

The trade agreement with the United Kingdom is one of Australia's most comprehensive and ambitious. The agreement eliminates tariffs on over 99 per cent of Australian goods exported to the United Kingdom. Two-way merchandise trade with the United Kingdom was worth $10 billion in 2022. The removal of tariffs significantly increases opportunities for Australian agricultural exports, including beef, sheepmeat, wine and sugar, as well as manufactured products such as auto parts and cosmetic products. The deal supports service trade worth over $4 billion by making it easier for service professionals to do business in the UK market.

From January 2024, Australians applying for the UK's Youth Mobility Scheme will see the maximum eligible age rise to 35, and they will gain the ability to stay in the United Kingdom for up to three years. The agreement underpins and deepens our already strong bilateral investment relationship with the United Kingdom, which is the second-largest source of foreign direct investment in Australia. The deal will help to lower the cost of living for Australian families by making consumer goods cheaper and reducing the input and running costs for businesses. It is a great deal that will benefit all Australians. The government is now focused on implementation and advocacy to support utilisation of this gold standard agreement.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Sterle, a first supplementary?

Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

With the historic free trade deal with the United Kingdom now in place, can the minister please provide an update on trade negotiations with the European Union?

Don Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | Link to this | Hansard source

(—) (): Thanks, Senator Sterle, for your follow-up question. Yes, I can update you on those negotiations. The Albanese government is currently focused on securing the best possible outcomes in a trade agreement negotiation with the European Union. The EU is a massive high-income market of around 450 million people, with a GDP of $24 trillion. Last week in Brussels I met with my EU counterpart, Executive Vice-President Dombrovskis, as well as the EU agriculture commissioner. The key message I conveyed was that Australia could only sign a deal that delivered new commercially meaningful market access for our agricultural products. We will persist and persevere, even if it means negotiations extending beyond mid-year. Our world-class producers, exporters and workers deserve the best. (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Sterle, a second supplementary?

Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

In addition to the negotiations to secure a trade agreement with the European Union, could the minister please outline other action taken by the Albanese government to diversify trade and investment opportunities?

Don Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | Link to this | Hansard source

Thank you, Senator Sterle. Yes, I can deal with those issues. The Albanese government is delivering on our election commitment to diversify trade and investment opportunities for Australian businesses, including by strengthening economic ties in the Indo-Pacific. Last month, I participated in a ministerial meeting in Detroit to advance negotiations on an Indo-Pacific economic framework. It was a successful meeting which concluded negotiations to strengthen cooperation and supply chains. Negotiations are on track to finalise the remaining pillars of the framework this year.

Australia and India are actively progressing an ambitious, comprehensive economic cooperation agreement that will build on the ECTA market access outcomes. On the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, ministers are scheduled to meet in Auckland next month to admit the United Kingdom. (Time expired)