Australia-UK trade deal a win for ag
Free trade deal to include tariff free access to UK market on range of produce including sheep, beef, sugar and dairyPrime Minister Scott Morrison and his United Kingdom counterpart, Boris Johnson, have verbally agreed to a free trade deal between the UK and Australia that will improve market access for both countries and provide a solution to the severe worker shortage on Australian farms.
The proposed deal was announced in London overnight and is pending finalisation and sign-off.
“The FTA is the right deal for Australia and the United Kingdom, with greater access to a range of high-quality products made in both countries as well as greater access for businesses and workers, all of which will drive economic growth and job creation in both countries,” said Trade Minister Dan Tehan in a press release announcing the FTA (free trade agreement).
“Australian producers and farmers will receive a significant boost by getting greater access to the UK market.
“Australian consumers will benefit from cheaper products, with all tariffs eliminated within five years, and tariffs on cars, whisky, and the UK's other main exports eliminated immediately.”
Key outcomes from the deal, specific to agriculture, include:
- 99 per cent of Australian goods, including wine and rice (short and medium grain milled) will receive immediate duty free access when the agreement enters in force.
- Beef tariffs will be eliminated after 10 years. During the transition period, Australia will have immediate access to a duty-free quota of 35,000 tonnes, rising in equal instalments to 110,000 tonnes in year 10.
- Sheep meat tariffs will be eliminated after 10 years. During the transition period, Australia will have immediate access to a duty-free quota of 25,000 tonnes, rising in equal instalments to 75,000 tonnes in year 10.
- Sugar tariffs will be eliminated over eight years. During the transition period, Australia will have immediate access to a duty-free quota of 80,000 tonnes, rising by 20,000 tonnes each year.
- Dairy tariffs will be eliminated over five years. During the transition period, Australia will have immediate access to a duty-free quota for cheese of 24,000 tonnes, rising in equal instalments to 48,000 tonnes in year five.
- Australian dairy farmers will also have immediate access to a duty-free quota for non-cheese dairy of 20,000 tonnes.
Another key detail of the FTA is the expansion of rights for UK Working Holiday Visa makers who will now be able to stay in Australia for three years with an increased cut off age of 35.
Prime Minister Morrison has also committed to developing an agriculture specific visa with the UK to fill the worker shortage currently plaguing Australian farms.
Agriculture Minister David Littleproud further added the visa will be extended to 10 South East Asian nations including Singapore, Malaysia, Indonesia, Brunei, Philippines, Cambodia, Thailand, Myanmar, Vietnam and Laos.
The details of the ag visa, such as how many it will be available to and if there are any age limits imposed, have not been revealed, but SBS has reported that Acting Prime Minister Michael McCormack has promised delivery of the visa by the end of September this year.
A new beginning
The National Farmers Federation has hailed the FTA as “a new beginning” for both countries and their people, and has applauded the initiatives laid out in the ‘in-principle’ trade deal.
National Farmers’ Federation President, Fiona Simson, said the agreement was a significant leap forward in Australia’s market access.
"Australian and UK farmers share a commitment to meeting the highest standards when it comes to caring for their land and their livestock, and that commitment shows in the quality of our produce,” she said.
"UK customers will benefit from the increased availability of high-quality Australian products on their supermarket shelves, alongside their homegrown options.
"We applaud Trade Minister Dan Tehan and our negotiating team on an improved set of market access outcomes. The UK deal will create new opportunities for Australian farmers as we work towards growing industry output to $100 billion by 2030.”
However, the NFF is calling on the Federal Government to take solid and urgent action on the proposed Agriculture Visa.
"We are encouraged by the commitments to development of an agribusiness visa and a specific ag worker visa (Ag Visa)," Simson said.
"We thank Minister Littleproud and Deputy Prime Minister McCormack for their support on the Ag Visa agenda. This is an issue we have championed for several years and while there have been tweaks and amendments to the visa regime, we simply must have a visa that is designed for the agriculture sector rather than the retro fitted schemes that we currently have.”
She added the NFF would like to see a visa that not only makes up for the shortfall in backpacker farm labour, but also addresses the growing shortage of farm workers.
“The NFF will need to see more detail on how an AgVisa and the flagged agribusiness visa will work, and when, because we have heard this one before," she said.
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