Australia`s trade history with the European Union is one of decades of frustration, guilt and harsh criticism of Europe`s famous protectionist barriers. Although the situation has improved in the more liberal business climate of recent years, Australia is hardly in the place to opt for a model of smooth borders and open market access. But it didn`t matter to Johnson, who calculated that an «Australian deal» seemed less catastrophic than «no market at all.» By skillfully turning the antipodean dial, he tried to neutralize the «Deal or no deal» debate that had tainted the nation for years. One way or another, the mere mention of Australia worked as a painkiller. It has put the hardest Brexit in a safer and more familiar form. This means that they do not have a real trade agreement – it is not as substantial or non-binding and it is essentially a declaration of intent prior to a concrete agreement. While the UK government has said it wants a trade deal after the UK`s withdrawal from the EU after the UK`s withdrawal at the end of 2020, this now seems less likely. While Australia is currently negotiating a free trade agreement with the EU, it does not yet have one. If the UK traded with the EU under «Australian terms,» it would not have favourable access to the EU market. British companies would face EU tariffs for export to the continent, and EU companies would face standard UK WTO tariffs when trying to export to the UK.

The Prime Minister said that because of the EU`s stubborn intransigence, he had to conclude that the «Canadian» trade agreement he sought would not be successfully negotiated without a «fundamental» change in the negotiating position of Brussels. He said it was therefore important for businesses to prepare to trade with the EU on the basis of «agreements closer to those of Australia, based on simple principles of global free trade.» That`s why Australian exporters are backing Canberra`s move to conclude a new free trade agreement with Brussels so they have the security they need to invest and plan. The EU and Australia have been negotiating a free trade agreement since June 2018, but no final agreement has yet been reached. Australia has trade agreements with the EU, but there is no comprehensive free trade agreement yet; It has been negotiating with the EU since July 2018. In reality, the EU and Australia have been negotiating such an agreement since 2018.