Aus-UK agreement removes tariffs for Australian olive products

The Australia-United Kingdom Free Trade Agreement (AUKFTA) was signed in December after more than 18 months of negotiations, bringing a promising business boost for our industry.

Tariffs on over 99% of Australian goods exported to the UK, including most olive products, will be eliminated on entry into force of the agreement. This will remove the current tariffs imposed on Australian products exported to the UK, set at a base rate of £104/100kg for olive oil and 12% of value for table olives.

AOA CEO Michael Southan said the removal of the tariffs for olive products will help even the playing field for Australian olive producers.

“This is great news for the Australian industry and will help make our products more competitive in the UK market,” he said.

“While lower labour and production costs in the EU and other major producing countries overseas will continue to create a pricing differential for imports to the UK, the removal of the tariffs on Australian goods will have a substantial impact on levelling the playing field.

“The subsequent lower landed price of our products, combined with the increasing recognition of the high quality of Australian EVOO and the ‘clean, green’ reputation of Australian food products overall, will no doubt make buying Australian a more attractive option for UK consumers into the future.

“It provides an outstanding boost for existing importers to the UK, and opens new opportunities for businesses where the current tariffs and former open EU trade practices in the UK market made their products costprohibitive.

“The AOA looks forward to the entry into force of the agreement and the subsequent growth in export opportunities for Australian olive producers.”

FTA Portal information

The DFAT Free Trade Agreement Portal shows listings for olive oil and table olives as follows:

Olive oil

HS Code: 1509.10.20

Olive oil and its fractions, whether or not refined, but not chemically modified. » Virgin olive oil and its fractions obtained from the fruit of the olive tree solely by mechanical or other physical means under conditions that do not lead to deterioration of the oil » Extra virgin olive oil obtained from the fruit of the olive tree solely by mechanical or other physical means under conditions that do not lead to deterioration of the oil, untreated (excl. lampante oil)

Tariff table:

Base Rate before FTA - 104.00 GBP/100kg 31 December 2022 onwards - 0%

Tariff notes:

Prior to the Australia-United Kingdom Free Trade Agreement - Not yet in force (tariff dates indicative only) (AUKFTA) the base rate for this product was 104.00 GBP/100kg. Upon entry into force of AUKFTA this will be changed to 0% on day one of the agreement.

Table olives

HS Code: 2005.70.00

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of 2006. » Olives, prepared or preserved otherwise than by vinegar or acetic acid (excl. frozen)

Tariff table:

Base Rate before FTA - 12% 31 December 2022 onwards - 0%

Tariff notes:

Prior to the Australia-United Kingdom Free Trade Agreement - Not yet in force (tariff dates indicative only) (AUKFTA) the base rate for this product was 12%. Upon entry into force of AUKFTA this will be eliminated on day one of the agreement.

Importing country requirements

Producers looking to commence exporting to the UK are also advised to search the Department of Agriculture and Water Resources’ Manual of Importing Country Requirements (MICoR) for requirements for products and commodities to be accepted for import.

A link to the Manual is available on the department’s website - www.awe.gov.au and search for ‘Micor’ on the home page.

AUK FTA background

The United Kingdom and Australia started negotiations for a free trade deal on 17 June 2020, after the UK’s exit from the European Union. Following almost a year of negotiations, the broad terms of the agreement were agreed in principle on 14 June 2021.

The Australia-United Kingdom Free Trade Agreement (AUKFTA) was signed on 17 December 2021 and subsequently tabled in the Australian Parliament. The Agreement is now being considered by the Joint Standing Committee on Treaties (JSCOT) following a public submission period and is expected to enter into force during 2022.

The government says the FTA agreement will help Australian goods and services exporters to diversify and grow their UK market share, and make it easier to attract investment in Australia.

The elimination of tariffs on Australian wine, short and medium-grain rice, honey, nuts, olive oil, most seafood, most fruits and vegetables and most processed foods is one of the key outcomes of the agreement, affecting over 99% of Australian goods exports to the UK.

More information: www.austrade.gov.au/ aukfta; www.dfat.gov.au – trade and investment.