United Kingdom and Australia have agreed on broad terms of a trade deal on Monday, the first to be negotiated from scratch since the UK left the EU.
Gatekeepers News reports that the new deal which was sealed by UK Prime Minister, Boris Johnson and Australian PM, Scott Morrison during a dinner at Downing Street, is expected to give the two countries’ food producers and other businesses effortless access to each other’s markets.
The agreement will cut tariffs on products like Scotch whisky, clothing and cars. It will also reduce levies on agricultural products, a point of contention that had sparked a backlash from Britain’s farming sector.
The farming community raised concerns about the UK jeopardising its food standards amid tensions between the Environment Secretary, George Eustice, and the Trade Secretary, Liz Truss.
UK farmers also have concerns that there will be no significant defences in place to stop farmers from being undercut by cheap imports.
Gatekeepers News reports that Australian farmers are permitted to use some hormone growth promoters, pesticides, and feed additives that are forbidden in the UK.
Under the terms of the deal, there will be a cap on tariff-free imports for 15 years, using tariff-rate quotas and other safeguards, according to the UK Government.
The British government perceives the Australia accord as a stepping stone to entering the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), an 11-country pact that includes the likes of Singapore, Malaysia and Japan.
Britain’s next trade targets are deals with New Zealand and the U.S.
