Uk-australia trade deal has ‘screwed over’ British farmers
THE UK Government has been accused of “screwing over” farmers with a new trade deal after details of plans for meat tariffs were revealed by the Australian government.
The Australians released information on tariffs for meat products last night, which Westminster had not yet disclosed as part of the announcement about the two countries’ new free trade agreement.
Announcing the deal yesterday, Boris Johnson said it marked a “new dawn” and represented “global Britain at its best”.
Westminster officials said the 5 per cent tax on Scotch whisky imports would be scrapped and farmers would be “protected” for 15 years by a cap on Australian meat imports.
However, the Australian government revealed tariffs on beef and sheep meat, which includes lamb and mutton, would be “eliminated” after 10 years.
Farmers groups across the country have previously raised concerns about the trade deal having an impact on the demand for home-grown meat if cheaper
imports start flooding supermarket shelves.
The Scottish Government’s trade minister, Ivan Mckee, also hit out at the deal, saying Holyrood had not been involved in the negotiations and it would not protect Scottish farmers.
He said the agreement “deal does not even remotely undo the damage to our economy caused by Brexit”, and demanded the UK Government publish an impact assessment.
In a statement issued last night, he added: “The Scottish Government has seen no details of the agreement reached with the Australian Government.
“We have had no role in the negotiations on tariffs and quotas despite regularly pressing the UK Government for this.”
Mr Mckee said the announcement on the deal “confirms our fears that the UK Government has signed up to a deal that will be damaging for farmers and crofters”. He added: “A 15-year cap on imports will provide no comfort for farming communities, who have looked after the land for generations.”
Labour’s Luke Pollard, the party’s shadow secretary of state for the environment, food and rural affairs, said: “The Government are screwing over our farmers the same way they screwed over the British fishing industry.
“To do so with one sentence in a press release, and no answers to the crucial questions it raises, shows a staggering contempt for Britain’s farming communities.”
According to the Australian government, beef and sheep meat tariffs will be removed after 10 years, with the level of tariff-free imports for beef rising gradually to 110,000 tonnes by year 10 and for sheep meat rising to 75,000 tonnes.
In the five years after this, a 20% tax will be applied to beef for the remainder of the year if an import threshold of 175,000 tonnes is reached.
Imported sheep meat will also be subject to a 20% tax after 10 years if imports go beyond a threshold of 125,000 tonnes per year.
Farmers say the deal has provided no assurances for their long-term future, as the levels of tax-free imports on meat products are far higher than what the UK previously imported.
Last year, the UK imported just 560 tonnes of beef and veal, and 8,500 tonnes of lamb and mutton from Australia – a fraction of what will now be available to import tariff-free.
National Farmers’ Union Scotland president Martin Kennedy said: “As detail on the proposed terms of agreement around an Australian trade deal emerge, deep concerns will remain about its impact on Scotland’s farmers, crofters and our wider food and drink sector.”
He said the suggestion of a cap on tariff free imports for 15 years was “merely a slow journey to the Australians getting unfettered access to UK markets”, adding there were “no guarantees that the promises of other safeguards will address the fact that very different production systems are permitted in Australia compared to here in the UK”.
He added that MPS should be able to scrutinise the deal properly, and the Government must provide an impact assessment “on what it may mean for the agriculture and food sectors”.
“An FTA with Australia, and the way it has been agreed without proper industry consultation or scrutiny, sets a dangerous precedent for other Free Trade Agreements” he said.
“The cumulative impact of all such trade deals on extremely vulnerable sectors such as farming, food and drink could be hugely destructive.”
Other industries were more hopeful about the new trade deal, including Scotch whisky distillers who will be able to export to Australia without the 5% tariff on their products.
Young people will also be able to live and work in Australia for up to three years under the new arrangement.
Karen Betts, chief executive of the Scotch Whisky Association, said the deal “will help Scotch whisky distillers continue to expand exports to Australia,which have almost doubled over the last decade”.
She added: “It’s also important to us that trade with Australia is now tarifffree for Scotch whisky – our preference is always for tariff-free trade, which enables Scotch whisky to compete on a level playing field and on the strength of our reputation for quality.”
Scottish Secretary Alister Jack said the deal was “very welcome news for Scotland and the whole of the UK”.
He added: “Australia is the world’s eighth largest market for Scotch whisky exports, worth £113m last year. The removal of tariffs presents a fantastic opportunity for our iconic distilleries.
“Scotland’s financial services, manufacturing and pharmaceutical sectors will also receive a boost.
“Measures to protect the UK’S agriculture industry and maintain high standards will also help Scottish farmers make the most of international opportunities opened up by this deal.”
A 15-year cap on imports will provide no comfort for farming communities, who have looked after the land for generations