‘Time running out’ on US-Australia trade deal as workers right and agriculture remain sticking points

Workers rights and agricultural products are emerging as major stumbling blocks for a post-Brexit trade deal between Australia and Britain.

Britain's Prime Minister Boris Johnson greets Australia's Prime Minister Scott Morrison at the G7 summit in Carbis Bay. Picture: Getty Images

Workers’ rights and agricultural products are emerging as stumbling blocks for a post-Brexit trade deal between Australia and Britain, with hopes dimming that Scott Morrison and British Prime Minister Boris Johnson will be able to sign an in-principle agreement this week.

After the G7 summit, the Prime Minister is set to go to 10 Downing Street on Tuesday morning AEST to discuss the final details of the free-trade agreement.

But despite hopes of significant movement this week on a final deal, Trade Minister Dan Tehan moved to temper expectations as government sources said Mr Morrison was prepared to wait to secure the right deal for Australia.

“We want to make sure that the substance is there, that it’s comprehensive, that it’s ambitious,” Mr Tehan told Sky News on Sunday. “My hope is that over the next 48 hours we’ll be able to resolve the outstanding issues.

“But the clock’s ticking and time is running out.”

Both countries hope a finalised British-Australian trade deal will help with Mr Morrison and Mr Johnson’s objectives to reimpose a rules-based global order in the face of a rising China.

Last week, British Trade Secretary Liz Truss said a historic UK-Australia free-trade agreement would ensure both nations “stand up for rules-based trade against those who threaten to undermine it” and called out China’s pernicious behaviour.

But it is understood workers’ rights have emerged as a sticking point in the final negotiations with the British government this week.

Last April, Mr Tehan said he wanted the trade deal to allow more freedom for professionals and young people to move between Britain and Australia.

But the British Home Office – under the leadership of hard-right Home Secretary Priti Patel – has sought to tighten immigration into Britain in recent months after years of freedom of movement with the EU finally ended last year.

Agriculture also has been an issue in the negotiations after Mr Johnson had to quell a cabinet rebellion against loosening tariffs on Australian beef and lamb.

Senior British cabinet ministers – including Mr Johnson’s de facto deputy Michael Gove – reportedly fear the trade deal could harm British farmers and even fuel the campaign for Scottish independence.

Scottish First Minister Nicola Sturgeon has used the trade negotiations with Australia to attack the Johnson government and push the economic case for secession. She said Scottish farmers would be the ones to lose out most if tariffs were lifted.

Mr Tehan also said the Morrison government was prepared to walk away from a deal that was not in the nation’s best interest.

“We need to be patient, we will be patient and wait to make sure that we have an agreement of substance in Australia’s national interest,” he said.

On Sunday, Labor’s foreign affairs spokeswoman Penny Wong said while the ALP supported any movement to diversify trade, she was “surprised” the post-Brexit has begun to stall.

“I’m surprised that the government has been focused on this for some time and yet hasn’t achieved a great deal of progress,” she said in Adelaide.

“And I know I hope that they can achieve an outcome because they’ve been talking about it for many, many years.”