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Fears that the signing might be delayed by a squabble over how much Australian beef and lamb would be allowed into the UK proved unfounded, with the two leaders settling on a scheme which will phase out tariffs and quotas. The exact number of years will not be known until Tuesday’s announcement.
The UK had initially asked for a 15-year transition period and Australia wanted all restrictions to be immediately swept away.
The sensitivities in Britain over the impact of more Australian agricultural imports on farmers point to difficult negotiations ahead with America, one of the world’s largest food producers.
Protectionist forces within the Conservative Party have claimed an open-slather deal with Australia would set a precedent for future negotiations with Washington.
The full potential of the deal will only be realised whenever Australia eases its hardline approach to coronavirus and opens its border to vaccinated travellers, which Morrison has not put a timeline on.
British government documents show a trade deal with Australia could lift UK GDP by 0.02 per cent, or £500 million ($914 million). Exports to Australia are expected to increase by between 3.6 and 7.4 per cent.
Canberra is yet to conduct its own impact modelling but British forecasts suggest GDP in Australia could grow by up to £700 million ($1.3 billion) under a tariff-free deal.
Former Australian prime minister Tony Abbott, one of 12 advisers on the new-look UK Board of Trade, cautioned protectionists against trading in “fear, not hope”.
“It baffles me a little that so many people in Britain are always running the country down,” he told GB News.
“Britain can cope. And a trade deal with one of Britain’s friends...that’s no threat to the people of Britain, this is going to help the people of Britain.”
Morrison on Monday met Chancellor Rishi Sunak, former chancellor Sajid Javid and Bank of England Governor Andrew Bailey.
He will now travel to Paris to meet French President Emmanuel Macron and former Australian finance minister Mathias Cormann, the new secretary-general of the Organisation for Economic Co-operation and Development, before returning to Canberra.