Australia and the United Kingdom have finalised a historic free trade agreement, which is set to take effect by the end of May.

Following years of negotiations, the deal will relax trade and visa arrangements between the two countries, providing more access to the UK market for Australian goods and services, including beef, sheep products, seafood, and other products. 

According to Prime Minister Anthony Albanese, there will be no tariffs on more than 99 per cent of Australian exports to the UK, and tariff quotas will be eliminated within a decade. 

The agreement will also make it easier for Australians to live and work in the UK, and for British citizens to do the same in Australia, with changes to rules for working holiday visas. 

“That will provide for better career opportunities than just casual work if you can go into a workplace for three years,” Mr Albanese says. 

Negotiations are continuing between Australia and the European Union on a separate free trade agreement, which would provide access to a market of 450 million people and a GDP of $20 trillion. 

Albanese said he expected to meet with EU representatives during his current visit to London for the coronation of King Charles. 

“The European agreement is a very important one, I will be having discussions while I'm here,” he said. 

“We're continuing to work very hard because we want that to come into effect as soon as possible as well.” 

An invitation has also been issued to EU leaders to visit Australia in the coming months. 

The UK deal marks the first free trade agreement struck by the UK after its exit from the European Union. 

The UK government initially faced some resistance to the deal from its agricultural sector, concerned about what cheaper Australian imports might mean for British farmers. 

However, the agreement has now completed its parliamentary processes in both countries and is set to provide significant benefits for both nations.