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Agricultural Exports from Australia: Tariffs
27 May 2021
Lead MP
Greg Hands
Debate Type
Ministerial Statement
Tags
EconomyBrexitBusiness & TradeAgriculture & Rural Affairs
Other Contributors: 30
At a Glance
Greg Hands raised concerns about agricultural exports from australia: tariffs 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
Our trade agreement with Australia is anticipated to be the first comprehensive deal struck outside of the EU, representing a significant milestone for independent British trade policy. The deal will reduce tariffs on UK exports by around £115 million annually and include advanced provisions in services, procurement, and digital trade. This agreement also serves as an entry point into the CPTPP, opening doors to major economies in Asia-Pacific. Despite concerns about competition from Australian imports, Hands reassures that protections for British farmers will be included, with any liberalisation phased over time. He highlights that UK scrutiny of the deal will be robust and welcomes parliamentary debate on it before implementation.
Emily Thornberry
Lab
Islington South and Finsbury
Question
The shadow criticises the deal for being rushed without proper consultation and debate. She asks for safeguards against import surges, standards maintenance, and a review clause to address negative impacts.
Minister reply
Hands refutes claims of rushing the deal, noting it began in 2017. He insists on no compromise on food safety, animal welfare, and environmental protections. He highlights that Australian meat imports currently represent only 0.15% of UK imports and stresses opportunities for British farmers through access to growing Asian markets via CPTPP.
Question
Millar asks about the quality-focused opportunities for Welsh hill farmers in a free trade agreement with Australia.
Minister reply
Hands notes great potential worldwide for Welsh lamb, especially in fast-growing Asian markets and through CPTPP. He emphasises the importance of these regions due to their rapidly growing middle classes.
Drew Hendry
SNP
Inverness Nigg and Ross
Question
Everybody wants more trade deals to be done, but the Minister simply is not listening to those at the sharp end. Martin Kennedy, president of the National Farmers Union Scotland, said that Scottish farming is next to be sacrificed—and once again it’s Scotland’s key industries which will bear the brunt of a Tory Brexit people here did not vote for”. Will the Minister rule out tariff-free access for Australian agricultural produce? Nothing must threaten our actions to mitigate climate change. Australia has lagged behind other advanced economies when it comes to addressing climate change. Will the Minister guarantee that no deal with Australia will include investor-state dispute settlement mechanisms?
Minister reply
It is always good to hear from the hon. Gentleman. There was no mention of the opportunities for Scottish financial services, FinTech or agrifood more generally—we actually have an agrifood trade surplus with Australia. The hon. Gentleman quotes NFU Scotland, which has great people. I have met Martin Kennedy personally twice in the last week to discuss the prospect of this deal. There will be no change in our standards as a result of this trade deal. We are absolutely committed to no compromise on our animal welfare, food safety or environmental standards.
Greg Smith
Con
Mid Buckinghamshire
Question
With the proposed free trade agreement with Australia potentially removing tariffs on all UK exports to Australia, does my right hon. Friend agree that this will save businesses across the United Kingdom millions of pounds—including in Buckinghamshire—support jobs across the nation, boost exports on products such as whisky, gin, cars and cheeses, and bring huge benefits to our agriculture sector?
Minister reply
I know how important my hon. Friend’s agriculture sector is in Buckingham. The deal we are trying to secure will be very beneficial to exporters of whisky, biscuits, cars, cheese, apparel, ceramics and gin, including gin makers in his constituency such as Foxdenton, Bucks Brothers and Butlers Cross.
Sarah Olney
Lib Dem
Richmond Park
Question
To support its agricultural industry, Australia has the highest rate of deforestation in the OECD and uses 71 hazardous substances that are currently banned in the UK. It is also one of the worst performers in tackling climate change, so how are the UK Government using the offer of zero quota and zero tariff access to persuade Australia to improve performance in this area?
Minister reply
We are the COP26 chairs this year, and we look forward to full Australian participation. The Australian Government are absolutely committed to combating climate change. There may even be something on that in this agreement, which we are negotiating at the moment.
Richard Graham
Con
Gloucester
Question
The Australian free trade agreement is a key step forward for both global Britain and the Indo-Pacific pivot. Does my right hon. Friend agree that hormone-injected beef is illegal in this country, wherever it comes from? Secondly, does he agree that a combination of staggering the introduction of tariffs and targeted DEFRA assistance will ensure that upland farmers do not suffer in the alarmist way suggested by anti-free trade Opposition parties?
Minister reply
My hon. Friend is absolutely right. Hormone beef will remain illegal because we will not be changing our import standards. I do not believe that this deal represents a fundamental threat to UK farmers, and it certainly does not compromise our high standards.
Carla Lockhart
DUP
Upper Bann
Question
Farmers in my constituency produce first-class beef to the highest standards both environmentally and in terms of animal welfare, at considerable cost to the family farm. Does the Minister think it is fair to pitch these farmers against Australian farmers and their intensively produced imports, with lesser standards and great environmental impact?
Minister reply
I thank the hon. Lady for that question. I have met the Ulster Farmers Union twice in the past week to discuss these issues in particular. We are absolutely confident of being on the front foot, and ensuring that Northern Ireland also benefits from our free trade agreements.
Aaron Bell
Con
Macclesfield
Question
Free trade has mutual economic benefits for not just producers but consumers, who get more choice. As the Minister said, the understanding is that the proposed free trade agreement with Australia would be a gateway to joining the CPTPP, which is a high-standards free trade agreement of 11 Pacific nations. Does he agree that doing so will mean lower tariffs for British exports to those markets, which will be an incredibly beneficial economic opportunity for British businesses?
Minister reply
My hon. Friend is absolutely right on the CPTPP. He is also right to focus on consumers, who are a vital part of our trade agenda. Under the CPTPP, 95% of tariffs between members will be removed.
Arfon
Question
In an answer to me last Wednesday, the Prime Minister lectured Welsh farmers that they should be selling their beef and lamb to China and the United States. He seemed unaware of one minor detail: that we do not have a trade deal with either country. When will Welsh families be able to sell their lamb and beef to China and the United States, and what should Welsh farming families do in the meantime as the Government trash their income with this bad Australia deal?
Minister reply
Again, we have done extensive outreach in Wales in recent times. There are already British exports of beef and lamb to China, and of beef to the United States. Getting our lamb into the United States is one of the key priorities of our trade agenda moving forward.
Matt Vickers
Con
Stockton South
Question
Alongside our farmers, car manufacturers such as Nissan play a key role in constituencies such as mine. In 2019, Nissan UK exported around 10,000 cars to Australia and another 10,000 in 2020. What impact might the free trade agreement with Australia have on UK car manufacturers such as Nissan?
Minister reply
My hon. Friend is right: 10,000 cars go from Sunderland alone each year to Australia. That is a big volume of cars and a big amount of receipts as well. Cars make up just under 8% of all UK exports to Australia. They currently attract a 5% tariff. We are looking to reduce or remove that tariff in the agreement.
Kenny MacAskill
SNP
Central Scotland
Question
Over 200 years ago during the highland clearances, people were shamefully replaced by sheep, for landlords’ profits. Now this trade deal threatens the supplanting of those sheep by cheap imports, for Tory dogma. What does it say about the Tory Government that they do not even care about Scottish sheep, let alone Scottish crofters and farmers?
Minister reply
Well, let me say a few things about that. We have to understand the existing trade flows in beef and lamb from Australia. Production costs in some of those Asian markets are twice those in the UK, which makes it very competitive for Australia to sell into markets such as Japan and Korea, where the domestic production price of beef is twice that in the UK. The Australian lamb quota for the UK is not even fully used at the moment.
Crawley
Question
Compromising on the high food standards we enjoy here in the UK must never be allowed; that is something on which we must never compromise. Will my right hon. Friend confirm that a free trade agreement with Australia will not allow hormone-fed beef into the UK, and that it will never be allowed to enter the UK under any free trade agreement?
Minister reply
I can absolutely confirm that hormone beef will not be allowed into this country, and there will be no compromise, according to the manifesto that my hon. Friend and I stood on in December 2019—no compromise on our high standards of animal welfare, food safety and the environment—but that does not prevent us from importing produce from Australia.
Stephen Farry
SDLP
North Down
Question
I recognise that the Minister is keen to highlight new markets for UK agrifood producers. However, the EU will remain by far the UK’s largest partner in food exports and imports. To what extent will any free trade agreement with Australia complicate or even preclude a UK-EU veterinary agreement on sanitary and phytosanitary issues, which surely should be a greater priority for the Government to assist UK food exporters and to address some of the tensions around the Northern Ireland protocol?
Minister reply
I thank the hon. Gentleman for that question. He is right that the EU will remain a large and important trading partner for us, particularly in agriculture. On his question about what impact an agreement with Australia would have, look, there will be no change to our standards as a result of the FTA—no change to our import standards. It should not have any impact on the EU.
Robbie Moore
Con
Keighley and Ilkley
Question
Without doubt, farming is one of Britain’s finest industries, and we all want to ensure that British food production has the best opportunities available to it, so will my right hon. Friend explain the role that the newly created Trade and Agriculture Commission will play in scrutinising the free trade agreement? Will he also comment on the opportunities the FTA will create in Australia for our British food producers, as well as in the wider Asia-Pacific?
Minister reply
My hon. Friend is right: this is about opportunity for the UK overall, and specifically for agriculture. It is a gateway to joining CPTPP. New trade deals will bring new export opportunities to British farmers. Global demand for beef and lamb is soaring. We should be wanting to fill part of that global demand.
Rachael Maskell
Lab Co-op
York Central
Question
I simply do not understand the Government’s logic: good-quality British farming undermined, high animal welfare standards compromised, jobs and livelihoods bartered away—all for no financial gain to British farmers, but at significant cost to our climate. Will the Minister assure me that he will not sign any trade deal with Australia until he has satisfactorily answered the five challenges that Minette Batters of the National Farmers Union has set out today, which have the full support of farmers—first protecting their interests, rather than his own?
Minister reply
I have already spoken about climate and the Australian Government’s commitment to the Paris accord, which we warmly welcome. We work very well together with Australia on environmental issues. On standards, I have already answered: there will be no compromise on our standards.
Robert Largan
Con
High Peak
Question
Businesses across the High Peak would welcome a trade deal with Australia, and the opportunities and jobs that that would bring. Will my right hon. Friend reassure the hill farmers of the Peak District, who, as we all know, produce the world’s best quality lamb, that their interests will be safeguarded and that the Government remain committed to the UK’s world-leading animal welfare standards, food standards and environmental protections?
Minister reply
My hon. Friend is absolutely right, and I do not know of a bigger champion of his local farmers in the High Peak than him. He is right to say that there are opportunities here in exporting for his local farmers.
Angela Crawley
SNP
Lanark
Question
A huge number of constituents have written to me with deep concerns that the Government will sell out our standards for a trade deal. Although the UK is a world leader in sustainable farming and high animal welfare standards, Australian agriculture lags far behind. The Royal Society for the Prevention of Cruelty to Animals, the Trade Justice Movement and Compassion in World Farming have voiced concerns that a deal with Australia would betray the public, farmers and animals. Chlorine-washed chicken, sow crates and battery-caged hens are all banned in the UK but are common practice in Australia. The Government have repeatedly promised that food standards will not be lowered in any trade negotiations, but can the Minister give a cast-iron guarantee and promise us that this tariff deal will guarantee that goods made to a lower standard will not be imported to the UK?
Minister reply
I thank the hon. Lady for that question, and there is a cast-iron guarantee that our standards will not be compromised on.
David Simmonds
Con
Ruislip, Northwood and Pinner
Question
May I commend my right hon. Friend on the trade deals that have been secured so far? Can he confirm that all these trade deals and the proposed one with Australia will add value to the UK economy without compromising existing trading arrangements with high-value, mature markets such as the EU, which are crucial to exporters in my constituency?
Minister reply
My hon. Friend is right on that and he is right to highlight that this is not an either/or; this is not either we have trade with the EU or we have trade with non-EU trading partners. It is absolutely our objective, going back to the manifesto he and I were both elected on, to have 80% of UK trade to be covered by free trade agreements within three years.
Rachel Hopkins
Lab
Luton South and South Bedfordshire
Question
When I met farmers in Luton South, they stressed to me the importance of trade deals not undercutting our food and animal welfare standards. In Australia, live farm animals can be transported over land for slaughter for up to 48 hours without rest—six times the limit that is currently allowed in Britain. On the grounds of both ensuring a level, competitive playing field and ensuring the humane treatment of farm animals, does the Minister think it is appropriate to reduce tariffs to zero on meat from animals that have been subject to that sort of cruelty?
Minister reply
I refer the hon. Lady back to the fact that Australia is highly rated by independent bodies for its high quality of animal health, rated five out of five by the World Organisation for Animal Health, and our import standards would not change as a result of this or any other free trade agreement.
Duncan Baker
Con
Wycombe
Question
It seems that the animal welfare and food standards scaremongering is out in full force again. Does my right hon. Friend agree that given that Australia’s food standards are better than the European Union’s and that its animal welfare is equivalent to the United Kingdom’s, a free trade agreement with us will have an absolutely negligible impact on our own high UK standards?
Minister reply
My hon. Friend is absolutely right. As we have said repeatedly, there will be no compromise on our own standards.
Tonia Antoniazzi
Lab
Gower
Question
I do just wonder whether the Minister is aware that New Zealand and Australia are actually different countries. Farmers in Wales are very concerned about this deal, and rightly so in Gower. What reassurances can he give that unilateral trade liberalisation with Australia will not set a precedent for future deals?
Minister reply
I am well aware that Australia and New Zealand are different countries. I remind the hon. Lady that Scotland will benefit very strongly from this deal, including Scotch whisky exports. There is strong 'buy British' branding in UK supermarkets which is unlikely to change as a result of any trade deal.
MP Constituency
Question
I am sure my right hon. Friend will agree that these trade deals should not be seen as the end of a conversation but the start of an ongoing one. Can he assure my constituents in the Black Country and businesses in the residual supply chain that, going forward, they will be placed at the heart of his negotiating strategy?
Minister reply
My hon. Friend is absolutely right; trade deals should not be seen as the end but rather the start of an ongoing conversation. The Black Country benefits from opportunities such as 5% car tariffs and machinery sales to Australia, alongside financial services and exports like gin, vodka, and cheese.
Patricia Gibson
SNP
Glasgow North
Question
Farmers in Scotland and across the UK fear this trade deal with Australia could put them out of business and flood our supermarkets shelves with inferior-quality products. Can he explain why it seems that our farmers and consumers simply do not understand how fabulous this deal is, or could it be that the Government are being disingenuous about the impact this deal will have on our farmers and food?
Minister reply
The hon. Lady uses the word 'disingenuous', but I notice she encourages less red meat consumption in her neighbouring council's tweets while complaining about a trade deal importing more of it. Scotland benefits from Scotch whisky sales to Australia, among other goods.
MP Constituency
Question
Mr Speaker, the deep historical relationship that we have with Australia is perhaps exemplified by the fact that your Chair is a gift from Australia. Does my right hon. Friend agree that this agreement is an opportunity to deepen the relationship with our kith and kin in Australia and should be celebrated and championed?
Minister reply
My hon. Friend is absolutely right; the deal can deepen relationships with Australia, including personal connections like relatives who have emigrated there.
Gerald Jones
Lab
Merthyr Tydfil and Aberdare
Question
There is concern from farmers in Wales and across the UK who face potential losses as a result of this deal. Will the Minister publish a rigorous economic assessment of cumulative impacts on our farming communities if zero-tariff and zero-quota deals are agreed not only with Australia, but with other countries such as New Zealand, Canada, Brazil, and others?
Minister reply
The hon. Gentleman makes a fair point; before negotiations, we publish scoping assessments which do not have specific deal details. Once the text of the deal is available, an impact assessment will be conducted involving Parliament.
Neil Hudson
Con
Epping Forest
Question
A free trade agreement between the UK and Australia can benefit both countries but there are concerns about potential damage to our farming sector. Will the Government commit to meaningful parliamentary scrutiny of this agreement and act to reconstitute the Trade and Agriculture Commission immediately, and also consider tariff-rate quotas as a sensible way of safeguarding the agreement?
Minister reply
The deal is not done yet; there is no text for scrutiny currently. The reconstituted Trade and Agriculture Commission will be set up soon, providing expert insight into this or any other free trade agreement, particularly in relation to agriculture and standards.
Kevin Hollinrake
Con
Thirsk and Malton
Question
Contrary to what the right hon. Member for Islington South and Finsbury said, I am not a member of a right-wing think tank; I represent a farming constituency. Nevertheless, I am supportive of any trade deal with Australia that maintains a fair and level playing field. Will my right hon. Friend set out what exact role the Trade and Agriculture Commission will play in making sure that is the case?
Minister reply
The role of the Trade and Agriculture Commission is set out in statute, expected to be a panel of experts who will provide this Parliament with expert insight into the terms of any free trade agreement, particularly in relation to agriculture and standards.
Deidre Brock
SNP
Glasgow North West
Question
Does the Minister appreciate that doing this deal with Australia would wreck the UK’s reputation on environmental issues? Does he think losing that reputation is a price worth paying for this trade deal?
Minister reply
There will be no compromise on food safety, animal welfare and environmental standards in relation to this or any other free trade agreement. Hormone-injected beef will not be allowed into the UK.
Stephen Metcalfe
Con
South Basildon and East Thurrock
Question
As my right hon. Friend has said, global demand for lamb and beef is rising rapidly, particularly for British meats around the Asian-Pacific market. Does he agree that free trade agreements are creating fantastic opportunities for British farmers?
Minister reply
My hon. Friend is absolutely right; these deals provide opportunities to enter fast-growing markets like Asia through high-standard free trade agreements such as the CPTPP and using talks on market access.
Shadow Comment
Emily Thornberry
Shadow Comment
Labour supports a trade deal with Australia if it benefits Britain's economy, but criticises the current agreement as rushed without proper consultation. The opposition fears this deal could harm farmers' jobs, undermine food standards, increase carbon offshoring and pave the way for future lopsided deals. Thornberry calls on the minister to ensure safeguards against import surges, maintain high product standards, and include a review clause in the agreement.
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