PARLIAMENTARY DEBATE
Agricultural Exports from Australia: Tariffs - 27 May 2021 (Commons/Commons Chamber)
Debate Detail
The deal will be the most advanced that Australia has struck with any nation bar New Zealand, and will, we expect, be particularly forward-leaning in areas such as services, procurement and digital trade. It will be a great deal for the UK, and our farmers will continue to thrive. The agreement is a gateway into the massive CPTPP—comprehensive and progressive agreement for trans-Pacific partnership—free trade area in the Asia-Pacific, and opens doors for our farmers into some of the biggest economies of now and the future.
Our food is among the best in the world and incredibly competitive. We should be positive, not fearful, of the opportunities that exist for our agriculture and our farmers. We give the EU preferential trading terms, which I do not recall those on the Opposition Benches objecting to. We should be unafraid of giving our Australian cousins something similar, taking the chance to deepen trading ties with one of our closest friends and allies.
Australian meat is high quality and produced to high standards, and it arrives here in low volume. Meanwhile, Australia has some of the highest animal welfare standards in the world. The UK accounts for just 0.15% of Australian beef exports, and our analysis suggests that any increase in imports is more likely to displace food arriving from the EU. Any deal we strike will contain protections for our farmers, any liberalisation will be staged over time, and any agreement is likely to include safeguards to defend against import surges. Negotiators are now working to agree the outstanding elements with the aim of reaching agreement in principle in June.
This is not the end of the process. Later this year, Parliament will be given ample opportunity to scrutinise the agreement—we welcome scrutiny of the agreement—as well as any legislative changes that may be required before the agreement enters into force. Parliamentarians will also receive an independently scrutinised impact assessment. Mr Speaker, you will know that our scrutiny arrangements are among the most robust, and in line with other parliamentary democracies. Indeed, in some areas we go further still.
This will be a great deal for our United Kingdom. It will deliver big benefits for both countries and will help us build back better from the covid pandemic. I commend it to the House.
As an exercise in intellectual honesty, I would just ask all those on the Conservative Benches, in the right-wing think-tanks and on the newspaper comment pages to consider for one second how they would have reacted if it was Brussels that had negotiated this trade deal and sold out Britain’s farmers. They would have been rightly furious, and they should not be any less so when it is their own Government who are doing the selling out. However, what matters now is to try to improve the deal on the table before it is signed in Cornwall.
Assuming that it is now too late to remove the offer of zero tariffs, can I ask the Minister of State to pursue three other changes? First, will he put in place a safeguard trigger—which, as I am sure he knows, Australia was willing to accept in its deals with Japan, China and the United States—to protect British farmers against surges in cheap imports? Secondly, will he make it clear that zero tariffs will apply only to Australian products that meet the same standards that British farmers are required to meet on food safety, animal welfare and environmental protections? Thirdly, will he insert a review clause into the deal so that, if its impact is even more negative than was forecast by the Government last year, there is scope both to amend the deal and to learn from it in future trade deals? Those are the bare minimum changes that we need to mitigate the damage that this rushed and botched negotiation is inevitably going to do, so I hope that the Minister of State will agree to pursue all three of those priorities today.
The right hon. Lady talked about any deal potentially undercutting our food standards. I was absolutely clear in the statement that there will be no compromise on our standards of animal welfare, food safety and the environment. That is our manifesto commitment, and it has often been repeated. She made a point about emissions and food miles. There is controversy in relation to meat production emissions, but no more than 5% of emissions are reckoned to come from the transportation across oceans of that product.
Let us look at Australia’s current trade patterns. Only 0.15% of Australian exports come to the UK. Australia sells 75% of its beef and 70% of its lamb into Asia at the moment. That is where the fast-growing markets are, and that is something that we in the UK are seeking to get access to ourselves through agreements such as the CPTPP and other trade agreements. There is a big opportunity here for UK agriculture.
The right hon. Lady asked about a safeguard trigger. As I said in my opening statement, safeguard triggers are typical of free trade agreements. This is still a free trade agreement that is subject to a live negotiation, but I would say that these things are typical of free trade agreements. She asked if we would have zero tariffs if the Australian produce met our standards. The Australian lamb and beef coming into the market today meets our standards. There will be no change as a result of the free trade agreement to our standards. Australian beef and lamb will continue to have to meet our import standards. If that is the only objection to zero tariffs, I take it that she would welcome such a situation if there were zero tariffs in the deal. She also asked about a review clause. Again, that is a typical feature of free trade agreements.
The right hon. Lady has to explain why she is seemingly so opposed to such a trade deal with Australia, a key Commonwealth, Five Eyes and like-minded trade ally of the United Kingdom. She did not complain about the zero-tariff, zero-quota access for EU beef and lamb, which had no staging on it at all. Why does she do so for Australia? I believe her real problem is that she still wants to remain in or rejoin the EU, like her neighbour the Leader of the Opposition, and cannot see the benefits of doing any trade deal with Australia. I commend the prospective deal to the House and invite more progressive voices on the Opposition Benches to join us in backing an FTA with our close friends and allies.
“Our seafood industry has already been hit hard by Brexit and now 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”.
NFU England has warned Ministers that farmers will struggle to compete if zero-tariff trade on lamb or beef went ahead. The RSPCA has warned that tariff-free access for Australia would betray the public, farmers and animals. Those are just some of the warnings to Government from those affected, not from politicians. Will the Minister rule out tariff-free access for Australian agricultural produce?
Nothing must threaten our actions to mitigate climate change. Australia is home to large energy and mining firms and 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, or will he press ahead and betray not only today’s public, farmers and animals, but those of future generations?
The hon. Gentleman quotes NFU Scotland, which has great people. I have met Martin Kennedy personally twice in the last week, as well as the Scottish Government to discuss the prospect of this deal.
Let me reiterate: 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.
The hon. Gentleman asked me to rule out tariff-free access to Australian agricultural products. There already is tariff-free access through an autonomous tariff rate quota. I think he seeks a rolling back of the trade arrangements we already have with Australia.
The hon. Gentleman asked about ISDS. It is a live negotiation, and there will be a chapter on investment. We are huge investors in each other’s markets, and I remind him that the UK has never lost an ISDS case.
However, the hon. Gentleman has serious questions to answer, too. Never in 20 years has the SNP supported any trade deal done by the UK or even by the EU, even though key sectors of the Scottish economy, such as whisky, apparel and fisheries, are dependent on our trade. SNP Members voted for a no-deal Brexit. They voted against deals with our friends, such as Canada, South Korea and South Africa. They did not support deals with Japan or Singapore. Whatever assurances I have given him today, or whatever turns out to be in the deal, I do not think it would make him and the SNP support this deal. When it comes to trade, the SNP is isolationist and against the best interests of Scotland.
I would point out to the hon. Lady the huge opportunities for the Northern Irish agriculture sector. The very first beef exported to the United States last year came from Foyle Food Group in Northern Ireland. There are great opportunities for companies such as Moy Park as well in Northern Ireland to be able to export more. We are absolutely confident of being on the front foot, and ensuring that Northern Ireland also benefits from our free trade agreements, as it is written into the Northern Ireland protocol, and is able to sell more of its high quality meat into markets all around the world, including to the CPTPP 11.
We already have a comprehensive free trade agreement with the EU, which is the trade and co-operation agreement, and I should point out that the EU has an extensive veterinary agreement with New Zealand. That agreement is of great interest in terms of it recognising the equivalence of New Zealand’s veterinary outcomes. I do not see any danger in a free trade agreement with Australia with respect to being able to maintain our trade with the EU.
“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?
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