Scrap farm proviso for backpackers: Britain

Australia will source more foreign workers in a shake-up of the agricultural labour force under a potential compromise in UK free-trade negotiations.

David Littleproud says a deal or ‘pathway to completion’ for a free-trade agreement is likely to be secured in the Tuesday meeting between Scott Morrison and Boris Johnson. Picture: Gary Ramage

Australia will source more foreign workers in a shake-up of the agricultural labour force under a potential compromise in UK free-trade negotiations, with both sides still hopeful an “in-principle” deal can be sealed by Tuesday when Scott Morrison meets with Boris Johnson in London.

Agriculture Minister David Littleproud told The Australian on Monday that the government was considering a UK proposal to scrap a requirement for Britons to work in the agriculture sector after entering Australia on working holiday visas – an outcome that would trigger a review on how to attract foreign workers, given “considerable” labour constraints in the sector.

“If an Australian goes to Britain, there are basically no constraints if they are a working holidaymaker. If a Brit comes to Australia, if they want an extension of their visa, we have said to them that they have to do 88 days on a property in regional Australia to get an extension for the second year,” Mr Littleproud said.

“(Britain) is saying ‘We want to equalise that’.”

Other sticking points include the removal of quotas for Australian beef and lamb exports and the delivery of greater UK market access for services businesses, with senior Australian government sources close to the negoti­ations alarmed by UK forces “tied to a EU protectionist approach.”

“Never underestimate protectionist forces,” one source said.

Mr Littleproud said a deal or “pathway to completion” for the FTA would likely be secured in the Tuesday meeting between Mr Morrison and Mr Johnson at Downing Street, arguing that a deal with Australia would help fast-track Britain’s aim to join the Trans-Pacific Partnership trading bloc. “This is a quicker pathway for them to be able to achieve that,” he said. “(And) there is commitment from both sides, which I think is a good thing.”

Ahead of the Downing Street meeting, where the leaders are expected to announce an Australia-UK low-emissions tech­nologies partnership, Mr Johnson is to host Mr Morrison for a working dinner following a key NATO summit in Brussels.

In a speech to business leaders at an Australia-UK Chamber of Commerce breakfast on Monday, Mr Morrison set out his vision for an “ambitious” free-trade agreement with the UK but said it was critical to “get the right deal”.

“The Brexit that has occurred is an opportunity for us to pick up where we left off … and to once again realise the scale of the trading relationship we once had,” he said. “And who better to do it than with Australia? Who better would understand the issues and sensitivities that have to be worked through?

“This indeed is a special relationship and one … I think can be greatly enhanced by these ­additional steps.”

While wanting to be able to get the in-principle agreement over the line, Australian negotiators know a two or three-week delay, if required, will not derail a final FTA.

Mr Littleproud said the government would consider the UK push to remove the requirement for Britons to work in the agriculture sector after entering Australia on working holiday visas, but there would be consequences if this was included in the final agreement. “Domestically we will have to find a solution if we are taking supply out of that ­labour force,” he said.

“We have already got considerable constraints now but also into the future. The world has changed so we are going to have to think differently about labour supply, the seasonal labour supply for agriculture.

“There are solutions that the government is trying to explore and will explore to make up that cohort that would be lost of UK backpackers that aren’t working on farms for those 88 days.”

Trade Minister Dan Tehan and British Trade Secretary Liz Truss were expected to continue speaking through Monday, but sources said a final decision on an in-principle agreement was now with the offices of Mr Morrison and Mr Johnson.

Under current trade arrangements, Australia can export a maximum of 15,349 tonnes of sheep meat to the UK, which is well below New Zealand’s sheep and goat meat quota of 114,205 tonnes. Australia is trying to increase its beef and veal quota from 4669 tonnes a year, while also pushing for better access for dairy products and sugar.

Australia exports about $670m of agricultural products to Britain each year and imports about $860m from the UK.

With the British government keen to secure its first major free-trade agreement since Brexit, the Australian camp believes it has leverage to ensure the final deal is of the “highest quality”.

The FTA will be one of the most advanced in the world for digital trade and used by Britain as a model for other deals and to support its entry into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

If an agreement in principle is reached this week, it will be followed by legal text of up to 1200 pages due by late October or early November. Pending parliamentary approval, an Australia-UK FTA is likely to be in force from July 1 next year.

Mr Morrison on Monday was scheduled to meet Bank of Eng­land governor Andrew Bailey, Chancellor of the Exchequer Rishi Sunak, Foreign Secretary Dominic Raab, British government MP Sajid Javid and senior intelligence and security officials. After Tuesday’s meeting with Mr Johnson, he will travel to Windsor Castle to visit the Queen.

ADDITIONAL REPORTING: BEN PACKHAM