UK considering tariff-free exports in boon for Australian farmers

In a major win for our farmers, Australia is poised to gain tax-free access to sell food to the UK.

In a major win for our farmers, Australia is poised to gain tax-free access to sell food to the UK, despite a push back from British beef producers who do not want our meat flooding the market.

As negotiations for a Free Trade Agreement between the two countries reach the final stages, UK Prime Minister Boris Johnson has indica­ted he is prepared to scrap tariffs on Australian food imports.
Australia pays tariffs of 20 per cent on all exports of beef to the UK, and under the plans being negotiated, this would be phased out to zero over the next 15 years.

The mooted deal is good news for Australia beef farmers. Picture: Zoe Phillips

But British farmers have pushed back fearing a trade deal might result in Australian beef containing hormone residue contaminating the UK market.
Both Britain and the European Union have had hormone-free beef for decades and are concerned about five hormones given to about half the herd in Australia to increase the weight and size of cattle.

Farming groups in the UK are also resisting the deal on the grounds it could flood their domestic market with cheaper Australian imports.

National Farmers Federation President Fiona Simson said any potential increase in Australian beef and sheep meat exports to the UK following the free trade agreement would depend on demand.

“The volume of Australian red meat to the UK in the context of the UK’s total red meat imports and Australia’s total exports, is very, very small,” she said.

“The aim of any free trade agreement is to provide both parties options. Australian red meat producers would like to have the option to ­export to the UK if and when the UK needs it.”

Trade Minister Dan Tehan dismissed UK farmers’ concerns about the quality of Australian food.

“We are world leaders when it comes to food safety, traceability, animal welfare standards, land management and environmental management,” he said.

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

Mr Tehan described the impending deal as a return to the favourable trade conditions the two countries ­enjoyed before the UK joined the EU in 1973.

“Australia stands ready again to be a willing partner,” he said.

As negotiations for a Free Trade Agreement between the two countries reach the final stages, UK Prime Minister Boris Johnson has indicated he is prepared to scrap tariffs on Australian food imports.

Australia pays tariffs of 20 per cent on all exports of beef to the UK, and under the plans being negotiated, this would be phased out to zero over the next 15 years.

But British farmers have pushed back fearing a trade deal might result in Australian beef containing hormone residue contaminating the UK market.

Both Britain and the European Union have had hormone-free beef for decades, and are concerned about five hormones given to about half the herd in Australia to increase the weight and size of cattle.

Farming groups in the UK are also resisting the deal on the grounds it could flood their domestic market with cheaper Australian imports.

National Farmers Federation President Fiona Simson said any potential increase in Australian beef and sheep meat exports to the UK following the free trade agreement would depend on demand.

“The volume of Australian red meat to the UK in the context of the UK’s total red meat imports and Australia’s total exports, is very, very small,” she said.

“The aim of any free trade agreement is to provide both parties options. Australian red meat producers would like to have the option to export to the UK if and when the UK needs it.”

The demand argument has also been extended to hormone beef, with Australian farmers pointing out they wouldn’t export it to the UK if it was not wanted.

Trade Minister Dan Tehan dismissed UK farmers’ concerns about the quality of Australian food.

“We are world leaders when it comes to food safety, traceability, animal welfare standards, land management and environmental management,” he said.

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

Mr Tehan said the aim of the Free Trade Agreement (FTA) negotiations was to “eliminate tariffs” so UK consumers have the option to choose Australian goods over other imports.

“We’re making good progress on the UK FTA,” he said.

“I had two days sitting down with (UK Trade Minister) 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.”

Originally published as UK considering tariff-free exports in boon for Australian farmers