Australia's trade minister Birmingham (Simon Birmingham) warned that a failure by the UK to set a deadline for its withdrawal from the EU's (EU) customs union would hinder the signing of a free trade agreement between the UK and Australia.
According to the Australian newspaper, Britain will leave the European Union on March 29 next year. On November 22, British Prime Minister Theresa May (Theresa May) announced that Britain and the European Union had reached agreement on a draft text. The draft will ensure that Britain has close economic ties with European markets.
According to the draft, if the United Kingdom and the EU cannot sign a new free trade agreement by the end of 2020, the transition period will be extended by up to two years, during which time the United Kingdom will remain within the EU customs union.
The Unionparty has said that free trade agreements will only be considered when the UK secedes from the EU customs union.
Birmingham hinted that the vague timeline in the new agreement between the UK and the European Union was not in Australia's interest, and that Australia's government wanted a clearer timing of Britain's withdrawal from the customs union.
He said: "as to when to take the next step-2020 or other time, if there is such a big doubt, it could be an obstacle to the negotiation of a free trade agreement between the two sides of the strait, referring to the United Kingdom and the European Union," he said. This raises questions about when the FTA will come into force. It is not clear whether Britain and the EU will remain in a tariff agreement by 2020, a decision that is in fact their business. Australia believes that it is best for everyone to put into effect a future agreement as soon as possible. "
There are strong supporters of Brexit in the UK's ruling party, and some people want closer economic ties with the EU, and the two sides are tit-for-tat. Therefore, there are major political uncertainties in the United Kingdom at present, and some people worry that there will be a "no agreement" for Brexit. Britain leaves the EU in the absence of clear rules.
Birmingham also said the situation would be worrisome. "Australia would prefer to see a negotiated Brexit because it will provide greater stability to financial markets and economic growth," he said.
