Australia and the UK are set to formally sign a new free trade agreement that will abolish tariffs on about 99 per cent of goods.

The $10 billion deal was agreed to in principle in June.

Trade Minister Dan Tehan told Chris Smith it will save Australian households $200 million on imports.

“The aim is to have it in force by July 1 next year and that’s when immediate benefits will flow here in Australia and the UK.”

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