UK-Australia deal sets 'dangerous precedent'

The UK Government announcement of an 'agreement in principle' over a free trade deal between the UK and Australia has failed to reassure Scottish farmers and crofters.

 

NFU Scotland responded by claiming that it will ultimately provide Australia with unfettered access to UK food and drink markets through a deal that has yet to have any proper parliamentary scrutiny, setting a 'dangerous precedent' for future trade deals.

 

The union also believes the cumulative impact of all such post-Brexit deals on Scottish farmers and crofters will be 'hugely destructive'.

 

NFU Scotland understands that British farmers will be protected by a cap on tariff-free imports from Australia for 15 years under the deal, using tariff rate quotas and other safeguards, simply delaying free access to one of the biggest agricultural exporters in the world.

 

Equally worrying for the Scottish industry is the potential that the UK government uses the same approach in negotiations with countries like New Zealand, USA, Canada and Mexico. The cumulative impact of these deals will have a major impact on UK farming, and, if handled badly, it may become impossible for some family farming businesses to continue to compete.

 

NFU Scotland president Martin Kennedy said: 'As detail on the proposed terms of agreement around an Australian trade deal emerge, deep concerns will remain about its impact on Scotland’s farmers, crofters and our wider food and drink sector.

 

'Under the proposed deal, there is to be a cap on tariff-free imports from Australia for 15 years.

 

'That is merely a slow journey to the Australians getting unfettered access to UK markets and with no guarantees that the promises of other safeguards will address the fact that very different production systems are permitted in Australia compared to here in the UK.

 

'The deal has not been afforded the appropriate level of scrutiny and consultation and has been agreed in advance of the promised statutory Trade and Agriculture Commission being established to scrutinise such deals.

 

'Parliamentarians must be given the opportunity to examine this deal, and any future deals, with government carrying out a detailed impact assessment on what it may mean for the agriculture and food sectors.

 

'A FTA with Australia, and the way it has been agreed, sets a dangerous precedent for other free trade agreements, including those with other major farming and food producing nations such as New Zealand, Canada, Mexico and the United States.

 

'The cumulative impact of all such trade deals on extremely vulnerable sectors such as farming, food and drink could be hugely destructive.'