The agreement, signed by the two countries on December 17, 2021, needed to be ratified by both nations’ parliaments to come in to effect.
Australia's parliament ratified the pact last November.
UK legislation to bring the agreement into effect received royal assent on March 24, paving the way for the British and Scottish parliaments to implement the final piece of legislation needed to complete the process.
Australian Dairy Industry Council chair Rick Gladigau said it was the first FTA to be signed with the UK since Brexit.
“Australian dairy has a reputation worldwide for being a reliable trading partner, supplying quality product,” Mr Gladigau said.
“We look forward to the success stories flowing from the Australia-UK FTA.”
The deal eliminates tariffs on dairy trade between Australia and the UK within five years.
It provides immediate duty-free access for significant volumes of milk, cream, yoghurt, whey, butter and cheese, and increases access to Australian ice-cream and infant formula in the UK.
About one-third of Australian dairy production is exported.
Currently, European Union members supply 98 per cent of the UK’s dairy imports.
The National Farmers’ Federation also welcomed the trade deal, saying it improved access to an important market for Australian farmers.
“Australia has among the lowest agricultural subsidies in the OECD. To survive and thrive, Australian farmers rely on open and fair access to export markets,” NFF chief executive officer Tony Mahar said.
“The UK FTA sets a strong standard from which to continue negotiations with other markets, as Australia continues to provide an important voice for levelling the playing field for agricultural trade.”
Specific outcomes relevant to agriculture include:
- Beef tariffs will be eliminated after 10 years. During the transition period, Australia will have immediate access to a duty-free quota of 35,000 tonnes, rising in equal instalments to 110,000 tonnes in year 10.
- Sheep meat tariffs will be eliminated after 10 years. During the transition period, Australia will have immediate access to a duty-free quota of 25,000 tonnes, rising in equal instalments to 75,000 tonnes in year 10.
- Sugar tariffs will be eliminated over eight years. During the transition period, Australia will have immediate access to a duty-free quota of 80,000 tonnes, rising by 20,000 tonnes each year.
- Dairy tariffs will be eliminated over five years. During the transition period, Australia will have immediate access to a duty-free quota for cheese of 24,000 tonnes, rising in equal instalments to 48,000 tonnes in year five.
- Australian dairy farmers will also have immediate access to a duty-free quota for non-cheese dairy of 20,000 tonnes.
- Rice will receive immediate duty free access for short and medium grain milled rice when the agreement enters in force.
