Wary British MPs to probe AUKUS deal

Critics say the benefits could be less than UK ministers have claimed.

The Commons international trade committee says it is concerned about whether the details of the agreement lived up to the claims. Picture: Andrew Parson

British MPs are to hold an inquiry into the UK government’s trade deal with Australia, saying its benefits could be less than ministers have claimed.

The deal was agreed after months of haggling over details of the pact agreed in principle in July.

Ministers claimed it would unlock £10.4bn ($19.6bn) of extra trade between the countries, boosting the economy while eliminating tariffs on all exports.

It was claimed the deal would increase GDP by about £2.3bn, or 0.08 per cent, in 2035 - a significant increase on earlier estimates.

The Commons international trade committee said it was concerned about whether the details of the agreement lived up to the claims. “We have particular concerns over how the economic benefit of the new deal has been calculated,” Angus MacNeil, the committee chairman, said.

“The government’s own initial scoping assessment suggested that the resulting long-term UK GDP gain could be as little as 0.01 per cent. We will be paying close attention to figures in the government’s impact assessment document for the signed deal.

“It’s critical we have enough time to scrutinise the details of the deal to assess the benefits and trade-offs.”

The National Farmers Union claimed the deal was “one-sided” and left its members “wondering what has been secured for them”.

Minette Batters, the union president, said: “This deal simply serves to heap further pressure on farm businesses at a time when they are facing extraordinary inflationary pressure and sustained labour shortages.

“I hope MPs will now take a good, hard look at this deal to see if it really does match up to the government’s rhetoric to support our farmers’ businesses and safeguard our high animal welfare and environmental standards. I fear they will be disappointed.”

Sue Davies, the chief policy adviser at consumer watchdog Which? said the deal’s success would be judged by what it delivered for people in their everyday lives. “The focus on tariff removal may lead to lower prices on some consumer products, which is a positive step,” she said, but “consumers expect the government to stand firm on the commitments it has announced it has secured to protect food and product standards, the environment and digital rights.”

Lord Bilimoria, the entrepreneur, crossbench peer and president of the employers’ lobbying group the Confederation of British Industry, said the deal had “opened up new frontiers for British businesses … This is a future-proofed, truly comprehensive and modern agreement that plays to Britain’s economic strengths and competitiveness.”

The Times