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Australia and Britain are now at “a new dawn” in their trading relationship according to Prime Minister Boris Johnson. As a result, many British products such as cars, Scotch whisky, biscuits and ceramics will be cheaper to sell to Australia. But alongside improved trading terms, the new deal is expected to pave the way for new deals with 11 more countries. But how? Express.co.uk brings you the latest Brexit news.
The UK and Australia have now agreed the major terms for a free-trade deal.
This landmark deal is the first agreed upon by Britain since the Brexit trade agreement was finalised.
The Government has long argued Brexit paved the way for better deals and now many are in support of the free-trade agreement outlined with Australia.
The deal has now been fully ratified as of yet and therefore the text has yet to be published, but the key terms involve the removal of most tariffs as soon as a deal is done.
But not only will the deal open up trade relations between the UK and Australia, but the deal is also opening up opportunities in a further 11 countries.
Ms Truss said the deal could be the key to unlocking future trade agreements elsewhere in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
She said: “This is the first UK trade deal struck from scratch since Brexit.
“It’s not just important in itself it’s got opportunities within Australia.
“It’s also about access to the wider Pacific market. We want to sign up to the Trans-Pacific partnership – a market of 11 countries, 500 million people and doing the Australia deal is a key part of that.
“That’s where the growing demand is for the kind of products and services we sell.”
The CPTPP consists of 11 countries including Japan, Canada, Mexico, Peru, Chile, Australia, New Zealand, Malaysia, Singapore, Vietnam, and Brunei.
More than 500 million people live in these countries and the trading partnership made up £110 billion worth of UK trade in 2019.
The Australian trade deal was hailed as an “important stepping stone” to a deal with the CPTPP according to one person close to negotiations.
An agreement with the CPTPP would be seen as another major win for Ms Truss, as the partnership includes a number of fast-growing economics and established regional players.
Any deal would be seen as a huge win for Boris Johnson’s post-Brexit “Global Britain” agenda.