Great Britain has offered Australia a trade agreement that gradually abolishes mutual import taxes within 15 years. Minister of International Trade Liz Truss has formally submitted the British proposal to her Australian counterpart Dan Tehan.
If the offer is accepted, it would also lead to the phasing out of quotas and limits on trade in various products between the two countries. The National Farmers Union (NFU) has warned that free trade in meat and dairy will cause hundreds of British cattle and sheep farmers to go bankrupt.
Almost the entire British agricultural industry called on the British government just last week not to concede too much in new trade agreements. British farmers apparently foresaw the situation and asked Prime Minister Boris Johnson not to introduce a zero percent customs tariff on all imports.
About twenty livestock and agricultural organizations expressed fear that full liberalization would open the doors to cheap food, which would ruin the British sector. British self-governance (‘Separate from the EU’) over its own trade agreements was one of Boris Johnson’s major Brexit campaign points.
Prime Minister Boris Johnson hopes to sign the agreement with Australia in June when he hosts the semi-annual G7 summit in London. After Britain’s departure from the European Union, he wants to conclude as many British trade agreements as possible as quickly as possible, without quotas and tariffs.
According to British media, the modern Canadian dairy industry is eager to conquer the market in Great Britain under a zero-tariff trade agreement, especially if the EU imposes import tariffs on the British. During the Brexit negotiations, Brussels made it clear that the British cannot have it both ways after leaving the EU.
Prime Minister Johnson especially emphasizes the importance for British exports. "International trade agreements offer a fantastic opportunity for all kinds of companies, for our manufacturers. We should view these new openings not as threats but as opportunities."