New fears for farming industry amid Australia trade deal storm
RENEWED concerns about the future of Wales’ farming industry have been raised amid reports of arguments between UK Cabinet Ministers over the possible nature of a post-Brexit free trade deal between Britain and Australia.
The Financial Times claimed the UK Government was negotiating zero tariff market access for agricultural products – an outcome which it is argued would harm the Welsh agriculture and food producing sectors.
But the paper said a “ferocious” row was going on between International Development Secretary Liz Truss, who wants such a deal, on one side, and Environment Secretary George Eustice and Cabinet Office Minister Michael Gove, who fear a political backlash if such a deal goes ahead, on the other.
Welsh Government Economy Minister Vaughan Gething said: “Farmers and food producers play a crucial role in our society, economy and environment. We have been very clear with the UK Government that any new trade deals must not cause an un-level playing field, by giving food importers with lower standards an economic advantage in our market compared to our own producers.”
Rural Affairs Minister Lesley Griffiths added: “We are extremely proud of the high food safety standards we have here in Wales, including standards around animal health and welfare, traceability, environment and food safety. No trade agreement should ever undermine that or our domestic legislation and the Welsh Government has consistently made this point to the UK Government.”
NFU Cymru President John Davies said: “We know that agriculture is almost always the last chapter to be finalised in any trade deal, and as these talks reach an advanced stage it’s important negotiators take on board the five detailed principles agreed today.
“The UK Government’s repeated commitments to safeguard our own standards and to not undercut UK farmers through unfair competition are encouraging, and we support their ambition to liberalise trade.
“We know that if we’re to open up the opportunities of new markets overseas for UK farmers, we will have to offer greater access to our own markets in return.
“However, this trade-off needs to be balanced, and we need to make sure concessions to our hugely valuable home market are not given away lightly.
“There is a very real risk that, if we get it wrong, UK farming will suffer irreversible damage rather than flourish in the way we all desire, to the detriment of our environment, our food security and our rural communities.
“These deals should showcase our credentials as a global leader in animal welfare standards, environmental protection and taking action to
tackle climate change. And they should reinforce a domestic environment in which UK farmers are empowered to rise to these challenges, leading the way in climate friendly, high-welfare farming.
“The British government faces a choice. It must recognise that opening up zero tariff trade on all imports of products such as beef and lamb means British farming, working to its current high standards, will struggle to compete.
“At a time when the UK Government has placed huge importance on its aim of levelling up, this would fundamentally undermine any ambition to narrow the rural-urban divide or to ensure all parts of the UK are included in the government’s desire to build back in the months ahead.”
FUW President Glyn Roberts said: “Liberal trade deals with Australia and New Zealand which include agricultural produce were always a key
worry in relation to Brexit, as their cheaper imports produced to lower standards than are required here would severely undermine UK farmers and could also compromise our trade with the EU – the destination for around a third of Welsh lamb, 90% of Welsh beef exports and 95% of Welsh dairy exports.
“The economic benefits for the UK of deals with these countries are negligible – their combined populations are a tiny fraction of the population of EU, which is on our doorstep, so we would be basically gaining very little and selling our farmers and standards down the river for the sake of a Government press release saying ‘we’ve got a trade deal’.”
Mr Eustice said: “I’m not going to get into discussions that are going on in Government about individual trade agreements.
“In any discussion on any part of government policy, and trade agreements are no exception, there’s a discussion and there’s a consensus.
“At the moment there’s a very clear consensus in government that we want to do a trade agreement with countries like Australia, but obviously on the right terms.”
Mr Eustice told Sky News: “We think there’s great opportunities, we’re very keen for instance to pursue trade agreements with Australia and also with the United States and with other countries as well.
“But always in any trade agreement, yes there’s a balance to be struck between your commercial interests and your desire to open up free markets.”
Downing Street said negotiators were discussing the “final elements” of a deal and that they hoped to get an agreement in principle by June.
Labour said British farmers would expect the Government to protect their livelihoods.
Shadow International Trade Secretary Emily Thornberry said: “If Liz Truss cannot negotiate a trade deal with Australia on the terms she herself proposed last year, the fault lies squarely at her door.
“So instead of blaming her Cabinet colleagues or the National Farmers’ Union for these difficulties, she should get on with her job, and deliver the deal that she promised.
“It’s perfectly normal that the Australian government should try to get the best possible deal for its agricultural mega-corporations. But British family farmers have a right to expect that Liz Truss will do the same for them, not sell out their livelihoods for the price of a quick trade deal, and a cheap headline at the G7 summit.”
A spokeswoman for the Department of International Trade said: “Any deal we sign with Australia will include protections for the agriculture industry and will not undercut UK farmers or compromise our high standards.
“We will continue to work with the industry, keeping them involved throughout the process and helping it capture the full benefits of trade.”