United Kingdom Reaches Post-Brexit Free Trade Deal With Australia

The United Kingdom and Australia have reached a free trade deal that will eliminate tariffs and red tape.

The British government sees the deal as an important piece of its post-Brexit trade and diplomatic strategy to shift the country's economic centre away from Europe and seek out opportunities in higher-growth Indo-Pacific nations.

British Prime Minister Boris Johnson hailed the free trade deal as "a new dawn" in the two countries’ relations.

Britain is Australia's eighth-largest trading partner and Australia is Britain 20th largest, with two-way trade between the countries worth $20.7 billion U.S. annually. Prior to Britain joining the European common market in 1973, Britain was Australia's most lucrative trading market.

Though details have yet to emerge, some estimates say the agreement could add $705.7 million U.S. to British economic output over the long-term.

The trade pact will be scrutinized by British farmers, who fear they could be forced out of business if the deal eliminates tariffs on lamb and beef imports from Australia. The government said British farmers would be protected by a cap on tariff-free imports for the next 15 years.