UK makes free-trade offer to Australia despite farmers' fears

LONDON - The UK has offered trade deal terms to Australia under which both countries would phase out taxes on imports over 15 years.

The cabinet was reportedly split on what terms to propose, amid concerns UK beef and lamb farmers could be undercut by larger Australian producers.

But the dispute was apparently resolved after Boris Johnson pushed for unity.

International Trade Secretary Liz Truss formally made the UK offer to her Australian counterpart on Friday.

If accepted, it would also lead to quotas - limits - on tax-free trade between the two countries to be phased out.

The National Farmers' Union (NFU) has warned that freeing up the UK-Australian trade in meat will lead to hundreds of British cow and sheep breeders going out of business.

Ministers are keen to strike as many trade deals as possible following Brexit, and Truss wants one in place with Australia by the time the UK hosts the G7 summit - of leading economies - in June.

But she had reportedly been at odds with Environment Secretary George Eustice over the possible impact on farmers of removing import taxes, called tariffs, that are normally paid to the government.

With these differences seemingly resolved at a Downing Street meeting chaired by the prime minister on Thursday, Truss put the UK's terms for a deal to Australian counterpart Dan Tehan at an online meeting on Friday.

Tehan said he was "confident" of reaching an agreement with the UK by early June, having had "very positive discussions" with Truss, the news.com.au website reported. – BBC.