Agricultural Exports from Australia: Tariffs

Debate between Greg Hands and Robin Millar

Thursday 27th May 2021 Commons Chamber

[Greg Hands]

I thank the right hon. Lady again for tabling this question. Let me answer each and every one of her questions. First, she said that this had been rushed through. I was at the Department at its inception in the summer of 2016, and one of the very first things that was announced in 2017 was our target for our initial batch of free trade agreements, which included Australia. That was back in 2017 and repeated by the current Secretary of State in 2019. She talked about the Trade and Agriculture Commission. This will be up and running soon—[Interruption.] If she is that keen to see it up and running soon, she might have supported the passage of the Trade Bill, which became the Trade Act 2021 just before Easter; instead, we saw her repeated manoeuvres to delay and undercut the Bill at the time.

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.

[Robin Millar (Aberconwy) (Con)]

We have all heard much in recent days about the threat posed by large-scale, low-cost Australian meat production, but we all know that consumers care about quality. What opportunities does the Minister see in a free trade agreement with Australia for the hill farmers of Aberconwy, whose grass- fed stock can run freely across the rain-soaked hills of north Wales, breathing in the clean mountain air?

[Greg Hands]

My hon. Friend is a doughty champion for his constituents in general and his farmers in particular. There are great opportunities worldwide for the Welsh lamb sector. For example, British lamb is currently not allowed at all in America. We are looking at fast-growing Asian markets, and I refer back to the importance of the Australia deal as a springboard to CPTPP. Half of today’s global middle class is in Asia, and almost 90% of the next billion middle-class people in this world will be in Asia. That is where the growing demand for high-quality meat, such as the Welsh lamb produced by my hon. Friend’s constituents, can be found, and that is where I see great prospects and great opportunities for his constituents, his farmers and farmers across the United Kingdom.