On 17 June 2021, the governments of the United Kingdom and Australia finalised the Agreement In Principle (AIP) which will set the terms under which the Free Trade Agreement (FTA) and last negotiations are to be concluded. The AIP contains initial provisions which will be locked-in for future negotiations to the final FTA, which both parties have expressed should be ambitious and comprehensive.
The UK Government has published a summary of the AIP. Of note, the AIP includes considerations relevant to the cosmetics industry such as:
- goods on the market, where Australia and the UK have committed to removing tariffs on all exported goods originating between the two countries;
- rules of origin, reflecting modern production processes, as well as existing and future global value chains;
- trade, including a chapter on Trade Remedies, on customs procedures and trade facilitation and on Technical Barriers to Trade;
- digital trade, where both parties agree to increase opportunities for digital trade across all sectors;
- Small and Medium-sized Enterprises (SMEs), Good Regulatory Practices and Innovation.