UK introduces new bill to implement trade deals with Australia, NZ

12 May '22

2 min read

Pic: Shutterstock

The UK government has introduced a bill which will help to bring into force its first independently negotiated Free Trade Agreements in more than 50 years. This bill will enable UK to export goods and services and bring imports at reduced rates for British customers. The UK signed the Australia Agreement in December and the New Zealand Agreement in February.

The UK-Australia Agreement is expected to increase trade by 53 per cent, 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 per cent and boost the economy by £800 million.

“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,” said international trade secretary Anne-Marie Trevelyan.

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, 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 the procurement regime to meet the terms of the Agreements; and only once the steps above have been completed can these agreements be ratified and brought into force, the government of UK said in a media release.

“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 release added.

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.

Fibre2Fashion News Desk (KD)

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