The Australia-United Kingdom Free Trade Agreement came into force on 31 May 2023 and will end tariffs on more than 99% of Australian exports to the UK.
Fruit, vegetable and nut exports from Australia to the UK have dropped drastically in the last couple of decades and the UK now imports fresh fruit, vegetables and nuts from countries closer to home.
Onions have been a hot commodity this year as UK and European production has been very low, but the Free Trade Agreement came too late to make any difference this season as the export window to the UK is between April and June.
"Australia does not currently export much to the UK, as the UK has had a strong push over the last 20 years to be less reliant on imports from the southern hemisphere," explains Lechelle Earl, CEO at Onions Australia. "However in some seasons the UK has insufficient production of its own and still has to import significant quantities. These come from the Egypt, Chile, South Africa, Mexico, India, New Zealand and a small amount from Australia."
In 2022 the UK imported 34,000 tonnes from Egypt, 4,600 tonnes from Chile, 1,400 tonnes from NZ and 616 tonnes from Australia. Egypt has grown its market share in recent years based on price and proximity to the market.
Lechelle said that the Free Trade Agreement will encourage more onion exports to the UK, but it will be very much dependant on the UK’s own production of onions and whether it needs to import to fill a gap in its own domestic supply.
"The agreement will help Australia’s price competitiveness with Egypt, Chile and South Africa, where import duties have not been payable due to developing country recognition from the UK."
For more information:
Lechelle Earl
Onions Australia
Tel: +61 458 11 11 26
[email protected]