Free trade agreements can create a number of opportunities and challenges for businesses. Improved trade liberalization has benefits in that companies benefit from better market access to cheaper and more diversified inputs. SMEs can benefit from increased business opportunities, but also from increased competition from products sold by companies in the partner country. Britain`s efforts for its future trade relations with the EU have been gradually mitigated due to differences of opinion between the two sides during the often difficult negotiations that followed the UK`s withdrawal from the EU on 31 January. Digital trade supports the UK economy and is of paramount importance to companies exporting services and goods. Recognising this fact, the government will ensure that a future free trade agreement with Australia incorporates the most modern digital trade provisions and builds on existing best practices to maximise opportunities for the UK economy as a whole. The UK`s digital trade provisions aim to reduce the costs of international trade, facilitate the coordination of global value chains, remove barriers to digital trade and connect businesses and consumers. [Note 20] Given the close links between the New Zealand and Australian economies, the baseline used in this modelling also takes into account the assumptions of tariff reductions faced by New Zealand exporters in the cattle and meat products subsector. [Note 64] This assumption is intended to reflect the market access that New Zealand exporters have through tariff quotas (TRQs). Like New Zealand, some Australian products currently enjoy preferential access to the UK through WTO TRQs. It was examined whether tariff adjustments were necessary for modelling Australian products that can be negotiated under LARS. It found that no adjustment was necessary for these Australian quotas.
Table 8: Developing countries` share of merchandise trade with the United Kingdom and Australia[Note 92] DIT welcomed the reactions and comments of all interested parties on the consultations. During the four consultations, the government received more than 600,000 responses, including those submitted by campaigns. They were analyzed and briefed on the government`s comprehensive approach to the four potential future trade agreements. The reactions to the consultation will also help the Government meet its commitment to develop a UK trade policy that will benefit the UK economy, businesses, workers, producers and consumers.