Boris Johnson has no beef on tariff-free trade with Australia

After nearly 50 years in the cold, Australian meat is close to being allowed back on to British dinner plates in a new free trade deal.

British Prime Minister Boris Johnson. Picture: AFP

After nearly 50 years in the cold, Australian meat is close to being allowed back on to British dinner plates, as Boris Johnson prepares to offer Australia tariff-free access to British food markets.

Trade Minister Dan Tehan is confident he can seal a free-trade agreement with the United Kingdom within six weeks, overcoming a backlash from British farmers and an internal battle within the government.

Australian food exporters say the deal will provide a once-in-a-generation opportunity to sell premium products into Britain as Mr Tehan and his British counterpart, Liz Truss, “sprint” to the finish line with weekly talks to finalise the deal.

Downing Street sources told UK newspaper The Times that the British Prime Minister “believes we should be offering the same terms to Australia as we offer to the EU”, as long as Australian exporters meet UK animal welfare and safety standards.

Despite a scare campaign by UK beef farmers, who said Britain would be swamped by hormone-laden Australian meat, Australian red meat producers said the market was likely to be limited to premium exports because of the cost of freight and competition from alternative buyers.

Mr Tehan said Australia wanted to offer UK consumers the option to choose high-quality Australian goods over other imports. “I had two days sitting down with Liz Truss on my recent visit to the UK and we are now meeting every week in a sprint to have an in-principle agreement by the end of June,” he said.

Trade Minister Dan Tehan. Picture: NCA NewsWire / Nicole Cleary

“Australian food is of the highest quality. We are world leaders when it comes to food safety, traceability, animal welfare standards, land management and environmental management.

“We have a robust regulatory framework for the use of agriculture and veterinary chemicals and strong compliance among producers.”

Mr Tehan said Australia’s red meat industry had set ambitious targets in relation to carbon abatement, meeting the UK’s demand for climate-friendly products. Australia’s beef producers, who face a 20 per cent UK tariff, are currently allowed to export just 3761 tonnes of meat to the country, compared with the EU’s 240,000 tonnes a year.

Australian sheepmeat exports to the UK are capped at 13,335 tonnes, or 4.3 per cent of its total market.

National Farmers Federation president Fiona Simson said Australian food exports under the deal would be “at the very niche end of the market”.

“We are looking at very, very high value products and relatively small amounts,” she said. “What we also know is there are a large amount of British products that make their way to Australia, whether we are talking about whiskey or cheeses or processed products. So it’s a two-way street.

“Our red meat does have an enviable reputation for traceability and quality and standards, so that could be one of the high-end products British consumers are likely to be interested in.”

Australia-UK Red Meat Market Access Task Force chair Andrew McDonald said the FTA would offer Australian producers fresh opportunities, but UK farmers had little to fear. “We are already exporting to 50 different countries and at the moment we don’t have enough meat to cover the inquiries we have,” he said.

“There’s been suggestions we have fridges full of product waiting for a deal to be signed so we can start loading meat on to boats and flood the market. Nothing of the sort.

“Will this increase the trade? For sure. Will there be a significant increase over the first few years? Probably not.

“Will it increase into the ­future? We’d like to think so.

“But the opportunity is that supply and demand will dictate it, and consumer preferences, rather than the very limited quota available and what the tariff is.”

Mr McDonald said Australia had been exporting hormone-free meat to the UK for years, under its limited quota, and could easily meet the country’s food standards requirements.

A herd of Australian Angus cattle. Picture: Supplied

The UK is keen to sign its first comprehensive trade deal since Brexit, despite government posturing including suggestions Ms Truss wanted to seat Mr Tehan in an “uncomfortable chair” to aid Britain’s negotiating position.

Under the terms of the deal, tariff liberalisation would take place in stages over the next decade to allow British farmers to improve productivity. In return, Australia would reduce tariffs on products such as Scotch and cars as well as opening its markets up to greater British investment.

Australia would also gain ­tariff-free access for its financial and professional services exports, and industrial products.

The plan is being resisted by UK farming groups, which believe it would set a dangerous precedent for future trade agreements and could result in British farmers struggling to compete with cheap imports.

Senior figures in the government, including Environment Secretary George Eustice, are also concerned concessions would become a baseline for future negotiations. “There’s worry across Whitehall about the principle of liberalisation and the precedent it will set,” a government source told The Times.

“What we agree with Australia is likely to become a template for negotiations with other countries, in particular America.”

Supporters of the deal say a failure to open markets to other countries would send a signal that the UK’s focus was still on Europe.