Agricultural Exports from Australia: Tariffs

Lord Purvis of Tweed Excerpts

Tuesday 8th June 2021 Lords Chamber

[The Minister of State, Department for Business, Energy and Industrial Strategy and Department for International Trade (Lord Grimstone of Boscobel) (Con)]

The noble Lord has made a number of points, but I will deal with the most significant. On the TAC, both the Agriculture Act and the Trade Act require the trade and agriculture commission to be in operation before the FTA is implemented. It is currently being established and expressions of interest to assemble the commission are out, so it will be able to report on the Australia free trade deal if it comes into effect. That report will be made available to the House. On safeguards, of course we recognise the need to reassure farmers and rural stakeholders that our market access proposals will not threaten sensitive sectors. The deal will include safeguards to defend the industry against import surges and the precise details of these are still being negotiated.

[Lord Purvis of Tweed (LD)]

ONS data from two weeks ago showed that the UK lost £1 billion in goods exports in just one month in January to our nearest trading partner, Ireland. This is more than the entire £900 million gain the Government are forecasting over 15 years for their agreement with Australia. The Government’s own scoping document stated:

“A trade agreement with Australia could increase UK GDP in the long run by around 0.01% or 0.02%”.


The EU scoping exercise for its own agreement with Australia in 2018 suggested 0.01% to 0.02%. Can the Minister explain why the Government are failing to secure any increase on their agreement with Australia than the UK would have had before Brexit? Why has there been such a collapse in trade with our nearest neighbour and trading partner, Ireland?

[Lord Grimstone of Boscobel (Con)]

With due respect, I do not think January can be taken as a representative month. I do not think any trends are yet fully established. As noble Lords know, there was some stopping beforehand and there was particular disruption as people got used to the new system. With regard to the Australia free trade agreement, we intend to secure reductions in tariffs on UK exports to Australia, which will save UK businesses millions of pounds. The deal will support over 15,300 business which already export goods to Australia, and I am sure the noble Lord would like to welcome this.