Ministerial Statement

Australia-United Kingdom Free Trade Agreement

The Hon. N.D. CHAMPION (Taylor—Minister for Trade and Investment, Minister for Housing and Urban Development, Minister for Planning) (14:01): I seek leave to make a ministerial statement.

Leave granted

The Hon. N.D. CHAMPION: Australia and the United Kingdom share deep cultural, security and economic ties. The Australia-United Kingdom Free Trade Agreement (A-UKFTA) along with the AUKUS agreement will only make those links stronger. The Australia-UK Free Trade Agreement is set to come into effect from midnight tonight, on 31 May. The agreement will see 99 per cent of tariffs eliminated on Australian exports to the United Kingdom over the next five years. The Australia-UK Free Trade Agreement is the result of years of negotiations and it is a credit to those involved that this free-trade agreement is coming into force so quickly. Praise in particular should be given to the federal trade minister, Senator the Hon. Donald Farrell, and the Albanese government.

Members interjecting:

The SPEAKER: Order! The minister has the call. Members to my left!

Members interjecting:

The SPEAKER: Member for Dunstan!

Members interjecting:

The SPEAKER: Member for Florey, order!

The Hon. N.D. CHAMPION: I understand that I was the first Australian trade minister in the United Kingdom following the announcement of the date on which the agreement was coming into force. On that business mission, I had the privilege of meeting the Minister of State at the Department of Business and Trade, who played a significant role in the negotiations, the Rt Hon. Nigel Huddleston MP.

The UK is already a lucrative trading partner for the state, with South Australia exporting more to the UK than we import directly into the state, with South Australia exporting just over $380 million worth of merchandise in the last 12 months to March 2023 while importing almost $200 million worth of merchandise from the United Kingdom. Wine represents around two-thirds of the state's overall exports to the United Kingdom.

The Australia-UK Free Trade Agreement will eliminate tariffs on wine immediately, equating to a saving of around $37 million in customs duties every year. The United Kingdom is South Australia's most valuable destination for wine exports by value, totalling some $239.9 million in the same period. The expansion of trade brought on by the free trade agreement is expected to boost Australia-UK bilateral trade by around 53 per cent. South Australia is set to benefit with key reductions in wine, meat, seafood and many of our other premium produce, as well as duty-free access to the United Kingdom market.

The Australia-UK Free Trade Agreement will also help liberalise many of the aspects of our economic relationship. Investment flows are one of those aspects. Investments from the United Kingdom are already significant as the fourth largest direct investor into the state and the second largest investor in Australia. Since 2003, UK foreign direct investment into South Australia totalled $2.8 billion, creating 2,500 jobs in the state. It is estimated that 130 United Kingdom companies have offices in the state, while around 40 South Australian companies have offices in the United Kingdom.

Under the FTA, new investment rules will allow greater market access for businesses entering the UK market while also reducing the impediments for UK business investing into Australia and into South Australia. The FTA provides South Australian service suppliers greater access to the UK market with obligations for both countries to treat suppliers equally. The FTA allows greater mobility between our two countries, enabling greater people-to-people links, and that ensures the smooth liberalisation of investment, services and merchandise trade.

The A-UKFTA provides a streamlined framework for the movement of qualified professionals between Australia and the United Kingdom. The benefits the Australia-UK Free Trade Agreement will have on our economies are undeniable. It will deliver a wide open trading partnership, free-flowing investment and opportunities for exporting skills and training. I look forward to watching Australia's trade and investment relationship with the United Kingdom grow in the years to come.