Free Trade Agreement Negotiations: Australia

Lindsay Hoyle Excerpts

Thursday 17th June 2021 Commons Chamber

[Elizabeth Truss]

My hon. Friend is absolutely right: Teesside is absolutely set to benefit from this deal. There will be a removal of tariffs on products such as steel and chemicals—no British product will face tariffs into Australia. The north-east is already incredibly successful in exporting 10,000 cars to Australia every year. The tariff on cars will be removed, allowing even more of our fantastic exports down under.

[Mr Speaker]

Let us go to the Chair of the Select Committee, Angus Brendan MacNeil.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP) [V]]

Tapadh leat, Mr Speaker. Some are saying that Australia has never before had such good luck in a trade negotiation and are wondering how this would have been different had the UK not been at the table. They suspect that Canberra is running out of champagne.

The reality is that in year one of the deal, UK farmers face the arrival from Australia of more quantities of beef, sugar, lamb, cheese and other dairy products than ever arrived in any year from the EU. To make up for the Brexit damage, we would need 245 such deals, which are very risky to farming. There is a feeling of unseemly haste with this deal. Incidentally, the EU would not create such risks for its farmers. With all that in mind, and given the need for scrutiny, will the International Trade Secretary appear before our Select Committee in the next week to 10 days so that we can have a good to and fro and investigate the issues before she signs the deal and Australia has her in handcuffs?

[Elizabeth Truss]

It is interesting that the Chairman of the Select Committee accuses me of haste. It is true that the EU is in the fourth year of its negotiations with Australia, just as it takes a very long time to negotiate any deal with any party. Fundamentally, the EU’s instincts are not to open up its markets. That has cost British business over the years, because we have not had access to Australian and Pacific markets on the same terms as others.

I assure the hon. Gentleman that I will appear in front of his Committee to answer questions prior to the signing. I am very happy to give him any kind of briefing. As he knows, he will get a copy of the signed trade agreement before anyone else—[Interruption.] I am afraid I cannot understand the hon. Gentleman’s gesticulations, because there is no sound. I think he is very happy that I will appear before the Committee—that is the message I am receiving.

As I have already said to the right hon. Member for Islington South and Finsbury (Emily Thornberry), in none of the 15 years of the transition period for beef and lamb access is the amount higher than that we currently import from the EU. It is extraordinary that the Labour party is happy with a zero tariff, zero quota deal with a landmass that is much closer to the UK, but afraid of a country that is 9,000 miles away. It seems to be one rule for its friends in the EU, and another rule for everybody else.

[Mr Speaker]

It might help if the hon. Gentleman went on a British Sign Language course.

[Mr David Jones (Clwyd West) (Con)]

May I congratulate my right hon. Friend on securing this agreement? As she will know, certain farming organisations have expressed concern about this deal. Will she repeat once again that there will be no reduction in the standards of food that will be allowed to be offered for sale on the British market? Further, will she invite those organisations to, rather than express concern, work with and her Department to secure the best possible outcome of the agreement she has achieved?

--- Later in debate ---

[Elizabeth Truss]

I am pleased that our agreement with Australia will contain a strong labour chapter, and also a small and medium-sized enterprise chapter that will cut red tape on our fantastic SMEs that want to export around the world, cutting their paperwork so that they can get more of their fantastic goods, including, of course, food and drink companies.

[Mr Speaker]

I will now suspend the House for three minutes to enable the necessary arrangements to be made for the next item of business.