Under the deal, there will be no tariffs on almost all Australian goods exported to the United Kingdom and more Australians will be eligible for lengthier working holidays in the country.
The agreement following Brexit will strip taxes on billions of dollars worth of goods, including beef, sheep meat, dairy and sugar.
It will come into effect on May 31.
After a two-year period, there would be no tariffs on 99 per cent of Australian exports to the UK, which are worth some $9.2 billion.
The same would apply to UK products arriving in Australia.
After the same two-year phase-in, Australians will be able to apply for working holidays in the UK to the age of 35 — up from 30 — and stay for a maximum of three years instead of two.
The deal will also allow Indigenous Australians to receive royalties when their artwork is resold in the UK.
The UK high commissioner in Australia said the benefits would flow through as soon as June.
“So there should be an immediate impact on a number of goods coming into each other’s country,” Vicki Treadell said.
Ms Treadell said other aspects of the agreement, such as the mobility visa changes, could take a little longer given they required legislative change.
She said the next step would be to boost two-way investment.
“Our consumer base is huge, and the potential for yet more excellent Australian produce, products going into the UK, there will be a huge appetite,” she said.
Australian Prime Minister Anthony Albanese said the agreement was about greater market access for Australian businesses.
He said slashing tariffs would also lead to products becoming cheaper, which would then put downward pressure on inflation.
“So the imports that we get from the UK, if you cut the taxes and cut the tariffs, then they are by definition cheaper and that will have a positive impact on our economy,” he said while in the UK recently.
Farmers have welcomed the news as the “win we have been waiting for”.
“The promise of quota tariffs being eliminated now and in the near future is like fertiliser for our economy, and a relief for farm businesses struggling with rising input costs,” National Farmers’ Federation chief Tony Mahar said.
Winegrowers are also raising a glass to the agreement coming into force, with the UK regarded as Australia’s second-largest export market.
“For wine, the agreement will see the elimination of import tariffs on entry come into force,” Australian Grape and Wine’s Lee McLean said.
“The tariff elimination represents a saving of approximately $50 million per year for the Australian wine sector.”
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