Claims that Britain’s trade deal with Australia would be damaging to the UK economy have been shattered after the first set of figures revealed huge gains in exports.
According to the Office for National Statistics sectors have seen growth as high as 200% in just the first year.
The top 20 gains included furniture exports up 200%, car sales up 119%, ships up 107.7%, other road vehicles up 84.4% and railway equipment exports up 75.5%.
Random goods like works of art (up 24.1%) and animal food (up 28,6%) are also on the list.
While claims that Britain’s agriculture would be destroyed by the deal have been blown out of the water with exports of dairy products and eggs up 13%.
Minister for Trade Policy Greg Hands told the Express: “It’s fantastic to see UK exports such as cars and road vehicles increase Down Under which will come as welcome news for our excellent automotive industry.
“Our historic trade deal with Australia is the first from-scratch deal to be negotiated since Brexit. It is a perfect example of what Britain can achieve as an independent trading nation, able to strike deals around the world and bring the benefits of free and fair trade back to these shores.”
Marco Forgione, Director General at the Institute of Export & International Trade, said: “This dramatic growth in trade between UK and Australia is very tangible proof that removing trade barriers and committing to free trade creates opportunities for businesses, delivers economic growth and helps communities to thrive.
“All the evidence shows that businesses which trade cross borders are more sustainable, more resilient, employ more people, are more innovative and more profitable.”
He insisted that Britain’s trade deals now are acting as a beacon of hope at a time of growing international protectionism.
Mr Forgione said: “As the global supply chain is reconfigured due to the weaponisation of trade, and disruption to trade flows from conflict and climate change, building resilience and anti-fragility means the UK has to diversify its supply routes.
“This partnership with Australia is an important part of this strategy.
“The Australia Free Trade Agreement removes tariffs on over £4bn in exports from the UK, supporting industries that employ 3.5 million people.
“Our members have told us that a major benefit of this FTA is reduced tariffs red tape for small firms looking to export goods to Australia. That is likely to be a key driver behind the increase.”
He went on: “Free trade agreements have a significant impact on economies and societies including increased economic growth, lower prices for consumers, greater innovation and technological advancements, as well as promoting peace and cooperation between countries.
“The early success of the agreement with Australia is testament to that. We have been working with the Department for Business and Trade and the Australian High Commission to promote the agreement and support businesses in using it, and we are committed to continuing this work with policymakers to ensure we make the most of the FTAs we’re pursuing and signing around the world.”
Charles Lear, a poster on X (formerly Twitter) who delights in “slaying Remainer unicorns”, said: “The UK-Australia Free Trade Agreement only came into effect 6 months ago and already the results are spectacular, defying all the doom-mongers from the ‘Rejoin’ campaigns.”
According to the Department of Business and Trade, total trade in goods and services (exports plus imports) between the UK and Australia was £19.5billion in the 12 months to September 2023, an increase of 17.8% or £2.9billion in current prices from the 12 months to September 2022.
The UK-Australia FTA eliminates tariffs on 100% of UK exports and goes further than any UK or Australia trade deal had before in a number of areas.
The deal is expected to increase trade with Australia by 53%, boost the economy by £2.3billion and add £900million to household wages each year in the long run.
According to government analysis, the West Midlands, the North East, North West, South East, South West and Wales are set to see the biggest gains. In addition, the economies of Wales, Scotland and Northern Ireland are estimated to benefit from a combined boost of £200million in the long run as a result of the deal.
