Free Trade Agreement between the United Kingdom and australia
(Goods and Services)

Questions and Replies

The following communication, dated 13 December 2024, is being circulated at the request of the delegations of the United Kingdom and Australia.

This document reproduces the follow-up questions addressed to the Parties following the 111^th Session of the CRTA and the responses submitted.

_______________

Follow-up questions from the European Union

1.1.  On the mobility of service suppliers: Chapter 11 of the UK-Australia FTA concerns the "temporary entry for business persons" and includes, among other things, commitments to not impose economic needs tests or impose any limitations on the total number of visas for the business persons covered by the Agreement.

Will Australian professionals still need to go through the UK's Sponsorship Scheme in order to provide services in the UK on a temporary basis?

Joint response from the Parties

The majority of the UK's commitments under Chapter 11 are operationalized through the Global Business Mobility route. These routes are sponsored.

1.2.  On the recognition of professional qualifications, could the Parties clarify if there has been any progress in their relevant bodies in efforts to "establish and operate systems for recognition of professional qualifications obtained in the other Party's jurisdiction"?

Joint response from the Parties

Through the Professional Services Working Group, both parties are working together to maintain dialogue on establishing and operating systems for the recognition of professional qualifications obtained in the other Party’s jurisdiction.

Most recently, the Australian Securities and Investment Commission (ASIC) and the UK's Financial Reporting Council (FRC) signed a MOU on Reciprocal Arrangements (MOURA), making it easier for auditors to work between both countries. This arrangement allows auditors who have obtained professional audit qualifications as a statutory auditor in either Australia or the UK to more easily apply for recognition of their qualification and audit rights in the other country – ASIC and UK Financial Reporting Council sign agreement to recognise audit qualifications | ASIC

Following the signing of AUKFTA, a new mutual recognition agreement (MRA) was finalised between the Architects Accreditation Council of Australia (AACA) and the UK Architects Registration Board in March 2023, that will allow architects to work in either country without the need for further training or examinations – New mutual recognition agreement for UK and Australian architects - Australian Institute of Architects

Finally, through the Legal Services Regulatory Dialogue, both parties are also working to enhance the trade in legal services and the professional mobility of lawyers between Australia and the UK – Australia-UK Legal Services Regulatory Dialogue - Law Council of Australia.

Follow-up questions from India

Merchandise trade

1.3.  Paragraph 1.5, Chart 1-1: The export volume of Australia to the UK shows some very noticeable trends in Chart 1.1, showing a sharp jump in 2019, and 2020. This was followed by significant drop in export volume in subsequent years (2021, 2022) to below pre‑pandemic levels. Australian exports to the UK also exhibit a similar cyclical trend during 2012-2015 (it fell sharply), and 2016-18 (exports increased significantly in 2016 and fell sharply again in 2017, 2018).

Are these trends attributable to any specific reason/factor?

Joint response from the Parties

The prices and volume of Australia’s semi-manufactured gold exports to the UK are volatile and responsible for these trends. For instance, the value of Australia’s annual gold exports rose from US$314 million in 2015 to US$5.2 billion in 2016 and from US$1.2 billion in 2018 to US$8.3 billion in both 2019 and 2020.

Special safeguards

1.4.  As per paragraphs 3.65, and 3.66 of the Factual Presentation, the UK may apply a product specific safeguard measure (PSSM) for beef and sheep meat, as in Part 2B-3 of its schedule under Annex 2A to the Agreement.

Would the PSSM (duty of 20%) be triggered automatically as and when trigger levels are reached?

Joint response from the Parties

When the conditions set out in Subsection 2B-3-2 are satisfied, the United Kingdom is permitted but not required to increase the customs duty rate.

Investment

1.5.  With reference to Chapter 13, could the parties provide the details (with website URL) of legislation at the central, regional and local governments or authorities to give effect to the provisions of the Chapter?

a._    In the Context of Article 13.17, could the parties provide some examples that would be construed as manner sensitive to environment, health or other regulatory objectives respectively?

b._    What are the other safeguard measures in this Chapter?

Response from Australia

For Australia: The investment chapter applies to all Australian legislation at the federal and regional level, subject to the non-conforming measures set out in Annex I and reservations in Annex II. The legislation listed in Annex I are available online. For federal legislation, see the Federal Register of Legislation. For State and Territory legislation, these are freely available online: Western Australia; New South Wales; Queensland; Victoria; South Australia; Tasmania; Northern Territory and Australian Capital Territory. The investment chapter does not apply to measures of local government.

Response from the United Kingdom

For the UK, the investment chapter applies to all relevant UK legislation, subject to the non-conforming measures set out in Annex I and reservations in Annex II. All relevant legislations can be found online at legislation.gov.uk.

__________