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UK-Australia Free Trade Agreement
05 January 2022
Lead MP
Anne-Marie Trevelyan
Debate Type
Ministerial Statement
Tags
EconomyTaxationTransportClimateBrexitBusiness & TradeStandards & Ethics
Other Contributors: 29
At a Glance
Anne-Marie Trevelyan raised concerns about uk-australia free trade agreement in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
EconomyTaxationTransportClimateBrexitBusiness & TradeStandards & Ethics
Government Statement
I am delighted to announce the signing of a comprehensive free trade agreement between the UK and Australia, marking the first new deal since leaving the EU. This agreement eliminates tariffs on 100% of UK exports, provides access to over £10 billion in Australian government contracts, benefits young Britons seeking opportunities abroad, and paves the way for UK accession to CPTPP. It is expected to increase trade with Australia by more than 50%, adding £900 million to household wages and boosting the economy by over £2 billion by 2035. The deal includes protections for animal welfare and environmental conservation, as well as provisions ensuring fair competition in various sectors including food and drink exports. It also supports climate change commitments, offering zero tariffs on low-carbon exports such as wind turbine parts and electric vehicles.
Torfaen
Question
Why have Ministers failed to limit the tariff-free increase on beef imports from Australia to a reasonable percentage, as achieved by Japan and South Korea?
Minister reply
The Government has set higher quotas for tariff-free increases in beef imports but aims to mitigate the impact through phased implementation over several years.
Torfaen
Question
What went wrong during negotiations that led to the absence of an explicit commitment to limiting global warming to 1.5°, as promised previously?
Minister reply
The Secretary of State will provide further clarification on this matter in due course.
Torfaen
Question
When can we expect the Government’s report on the impact of the deal on statutory protections for agriculture?
Minister reply
The Secretary of State has written to the new Trade and Agriculture Commission seeking advice, which will inform the Government's own report.
Torfaen
Question
Why are monitoring reports promised approximately two years after the agreement comes into effect, with subsequent checks every two years instead of annually?
Minister reply
The Government believes a period of several months allows for substantial scrutiny and preparation by relevant bodies.
Torfaen
Question
What steps will the Government take to address concerns raised by devolved Administrations, particularly regarding formal involvement in ratification?
Minister reply
The Secretary of State emphasises ongoing consultation and engagement with devolved Administrations throughout the process.
Torfaen
Question
Inquires about the failure to achieve similar import quotas as Japan and South Korea did in their deals with Australia, raising concerns about animal welfare standards not being upheld equally, questioning the absence of an explicit 1.5°C warming limit commitment despite previous assurances from COP26 president, pressing for immediate publication of Government’s report on statutory protections for agriculture, and criticising the delay in monitoring reports.
Minister reply
Acknowledges support for international trade but expresses concerns about Thomas-Symonds's genuine commitment to it. Defends the deal as fair and balanced, highlighting that Australian beef and sheepmeat are currently being sold primarily in Asia-Pacific markets with gradual quota increases allowing UK farmers time to adjust. Emphasises Australia’s new commitments on animal welfare and environmental chapters, including a net zero pledge, which aligns with Paris agreement objectives.
Mark Garnier
Con
Wyre Forest
Question
Congratulates the Secretary of State for her achievement in signing this first ab initio trade deal as an independent nation and expresses hope for more deals, including one with Thailand. Requests specific timelines for publishing reports from the Trade and Agriculture Commission and Government’s section 42 report, and asks about CRaG process trigger and publication of negotiating positions.
Minister reply
Praises Mark Garnier's work as a former Minister in the Department and current trade envoy to Thailand. Confirms anticipation of several months before laying everything before Parliament due to the deal's complexity. Requests the Trade and Agriculture Commission’s review, promising submission of section 42 measure after receiving their report.
Alyn Smith
SNP
Na h-Eileanan an Iar
Question
Welcomed progress on the UK-Australia trade deal, but criticised it for its lack of ambition on climate change. Mentioned that even in a best-case scenario based on government figures, GDP will only increase by 0.08% by 2035 while the Office for Budget Responsibility estimates a loss of 4%. Questioned the adequacy of consultation with farming and food sector interests.
Minister reply
Acknowledged that Scotland's views are important but noted that the deal includes an environmental chapter and commitments to climate change, including net zero strategy. Emphasised robust safeguards built in for farmers after extensive consultations.
Neil Parish
Con
Tiverton and Honiton
Question
Welcomed the trade deal but asked for assurance on protection for British farming, particularly regarding welfare standards and competitiveness.
Minister reply
Reassured Neil Parish by outlining three levels of protection: tariff rate quota, product specific safeguard mechanism, and a general bilateral safeguard mechanism to protect domestic industries.
Tony Lloyd
Lab
Worsley and Eccles South
Question
Asked for an absolute guarantee that the agreement will not put at risk any future sanitary and phytosanitary agreements with the EU.
Minister reply
Stated that the deal has a detailed SPS chapter and offered to sit down with Tony Lloyd to discuss it in detail.
Bim Afolami
Con
Welwyn Hatfield
Question
Asked about services trade in the agreement, particularly business and professional services, and requested a commitment to work on strengthening service offers in future deals.
Minister reply
Acknowledged the importance of UK’s services sectors and committed to showcasing them in all future trade deals. Mentioned mobility features and £10 billion Government procurement opportunities available to UK businesses.
Sarah Olney
Lib Dem
Richmond Park
Question
Questioned the justification for a 1,000% increase in estimated GDP boost from the original economic impact assessment.
Minister reply
Explained that the new assessment is based on continued development and evolution of the deal. Offered to sit down with Sarah Olney to discuss how they reached their current assessment.
Martin Vickers
Con
Brigg and Immingham
Question
Welcomed the agreement and asked about enhancing support for small family businesses to export.
Minister reply
Reassured Martin Vickers by mentioning various tools and services available through the Department to encourage exports, including the Minister for Exports' efforts.
John Spellar
Lab
Warley
Question
I welcome a trade deal with our allies, friends and family in Australia, especially for the motor industry. Along with AUKUS, I hope it will provide a renewed international democratic dynamic and closer working for more resilient supply chains in both goods and raw materials. I am concerned that Ministers may have been desperate to do any deal, rather than getting the best deal. If there are concerns about meat imports, will the Secretary of State press other Departments, the NHS and schools to prioritise local meat, just as every other country does?
Minister reply
I thank the right hon. Gentleman for his support and enthusiasm for this important deal with one of our closest allies and partners. Indeed, the AUKUS relationship is now developing and will be a very long-standing and close relationship, as we have had in many other ways. He raises an important point about local supply chains and the use of local goods, and I will make sure that that is passed on to my relevant colleagues.
Desmond Swayne
Con
New Forest West
Question
Might the worries of those who are concerned about the increase in quotas over the next 15 years be assuaged somewhat by the fact that existing quotas are largely unused?
Minister reply
My right hon. Friend makes an extremely important point. He highlights the fact that we should be reassured that our farmers have fantastic products that we will all, as UK consumers, want to continue to eat, and that indeed our Australian partners are keen to sell their products into the Asia-Pacific market, where there is a growing demand. We will also want to take up those market opportunities.
Kerry McCarthy
Lab
Bristol East
Question
Happy new year, Madam Deputy Speaker. Australia is the only country in the developed world on WWF’s list of global deforestation hotspots, and beef production is the No. 1 driver of this. In the great barrier reef catchments, 94% of land clearance is linked to it. It is destroying the habitats of threatened species, including the koala—and I am sure we would all want to preserve the koala’s habitats. Can the Secretary of State assure me that we will not, under this trade agreement, allow the import of more beef that is linked to deforestation?
Minister reply
In this free trade agreement, the UK and Australia have committed to combat illegal logging and related trades, which, as the hon. Lady pointed out, is critical to the preservation of our natural environment and that critical biodiversity—an area that the UK has led on in the COP26 discussions led by Lord Goldsmith through the nature track in Glasgow.
Duncan Baker
Con
Orchard
Question
We have had another fantastic trade deal that epitomises the cornerstone of one of the reasons people voted to leave the European Union, which was to set our own independent trade policy. We have heard a lot about agriculture but not a lot about young people, particularly professional young workers. Will my right hon. Friend explain the benefits of this deal for those young professional workers who will now have easier access to the wonderful lived experience of working down under?
Minister reply
I thank my hon. Friend for his enthusiasm and for highlighting again just how important this deal is. This is the first deal that we have negotiated from scratch as an independent trading nation. It is a broad and deep liberalising trade deal that affords, among other things, the opportunity for young Britons—anyone still under 35; sadly, that is not me—to travel and work in Australia for up to three years.
Dave Doogan
SNP
Angus and Perthshire Glens
Question
Fair play to Canberra, because they have no’ half scored a great deal with this one. It must be delicious to have scored such a great trade deal over your former overlords in London. I look forward to the benefits that this will bring to Scottish distilling—gin and whisky—but if exports of lamb and sheep meat from Australia to the United Kingdom are so insignificant to the Australians, why did you not write them out of the deal, because it is what you are getting the most heat on?
Minister reply
I am thrilled that the hon. Gentleman is so pleased for those Scottish food and drink producers, who I absolutely agree will have great opportunities. They are very exciting new market opportunities that those producers will, I have no doubt, take up with gusto.
Huntingdon
Question
First, I welcome the Secretary of State’s very positive win-win attitude towards trade negotiations, as opposed to that of some others in this House. She mentioned visas, specifically for young people. Could she give the House a little bit more information about the projected numbers of workers likely to be going backwards and forwards, and the sectors they are likely to be involved with?
Minister reply
I will ask the team to write to my hon. Friend about the technical detail, because I do not have those figures to hand. However, really importantly, beyond the question of the opportunities that under-35s on a three-year visa have, being free to choose what they want to do when they go and work in Australia, that shift from a two-year visa to a four-year visa for executives and managers who want to work in any number of sectors—and, indeed, for their families to be able to work in Australia as well—is a huge opportunity for our workforce to go and enjoy Australian opportunities, and also to bring UK expertise to our great friend and ally.
Kevan Jones
Lab
Durham
Question
I wish you a happy new year, Madam Deputy Speaker. From the enthusiastic way in which the Secretary of State is selling this deal, she has clearly been drinking a lot of the Prime Minister’s Kool-Aid, but no matter how much positive spin she puts on it, it is a bad deal for County Durham beef and sheep farmers, including those in my constituency. Those people are already struggling because of the restrictions that have come about because of Brexit, so I ask her what discussions she has had with her counterparts in the Department for Environment, Food and Rural Affairs about support for those farmers in years to come.
Minister reply
I cannot speak for my colleagues in DEFRA, but I know that progress on the environmental land management schemes framework is developing at pace. That framework will be a really important tool to help our farmers make the right choices, not only about the food production that they choose to do, but about managing the environment that they are stewarding on our behalf as we move forward and—to the question of the hon. Member for Bristol East (Kerry McCarthy) earlier—make sure that we look after the biodiversity and the nature that surrounds us.
Andrew Rosindell
Con
Romford
Question
What a great way to start 2022. I commend not only the Secretary of State and her predecessor, but the Australian high commissioner, the hon. George Brandis, who has been so passionate about the relationship between the two nations, and strongly support all the work that has gone on to make today possible and have this fantastic trade deal become reality. Is it not fantastic that this deal has been achieved? We were told that it would take 10 years to do any trade deal, and this has been done in a matter of just over a year. Does the Secretary of State agree that this is a golden opportunity in this year of the Queen’s platinum jubilee also to extend more trade and more co-operation to the Commonwealth, and other realms and territories?
Minister reply
I concur absolutely with my hon. Friend’s comments that the high commissioner, George Brandis, has been a huge advocate and supporter of the deal and indeed has assisted in some of the logistics challenges of carrying out, using mostly virtual methods, the very complex trade negotiations through different time zones to make sure that we were able to deliver this in an incredibly timely manner.
Tim Farron
Lib Dem
Westmorland and Lonsdale
Question
I am passionate about free trade, but this deal undermines our farmers' standards. The animal welfare differences between the UK and Australia are staggering. How will the Secretary of State reassure her own farmers who may be shocked by the deal?
Minister reply
Our safeguards should reassure farmers. We have an animal welfare chapter that sets out non-regression and working together, ensuring compatibility in standards despite not finding them in poultry, pigs, and eggs sectors.
Question
The UK-Australia trade deal is excellent for increasing exports. Will the Secretary of State support companies to improve their sales skills to take advantage of new markets?
Minister reply
Our export strategy includes tools and teams to help businesses discover new markets and move products into them.
Daniel Zeichner
Lab
Cambridge
Question
The Secretary of State mentioned passing the deal to the Trade and Agriculture Commission for comment. What will she do with their comments?
Minister reply
We look forward to receiving the report from independent experts who review agricultural elements of the deal.
Greg Smith
Con
Mid Buckinghamshire
Question
New free trade deals are important for prosperity. Can she reassure that her Department will do everything possible to promote British farmers' produce in Australia?
Minister reply
We want to see fantastic British produce sold around the world, including in Australia. Our teams work to help farmers and those who wish to sell their products into new markets.
Bill Esterson
Lab
Sefton Central
Question
The procurement chapter excludes an environmental chapter despite assurances that such chapters would be included on a deal-by-deal basis. How can the Government commit to tackling climate crisis through this agreement?
Minister reply
We have an environmental chapter in the free trade agreement, reiterating our commitment to keeping 1.5° alive as set out at COP26.
Question
What are next steps for joining CPTPP and progress on a new framework for Government-to-Government contracts?
Minister reply
We have put in our application last year and are being vetted, hoping to move to market discussions soon. We are looking at the framework for Government-to-Government contracts in detail.
Jim Shannon
DUP
Strangford
Question
How can we encourage Australia to produce meat products using high animal welfare standards as we do?
Minister reply
We have agreed a non-regression clause and co-operation matters on which we will work with Australians, ensuring that food coming into the UK meets our food standards and safety levels.
Shadow Comment
Nick Thomas-Symonds
Shadow Comment
The Labour Party welcomes trade deals that benefit UK workers and businesses but criticises the current agreement for inadequately protecting UK interests. The impact assessment shows a £94 million hit to farming, forestry, and fishing sectors, alongside a £225 million hit to semi-processed food industries. The shadow also highlights concerns over higher quotas on beef and sheepmeat imports, animal welfare standards, and the absence of explicit climate change commitments in line with Paris agreement objectives. Furthermore, questions were raised about scrutiny processes and formal involvement of devolved Administrations in ratification.
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