The UK and Australia have agreed on a major free trade agreement that is expected to set a precedent in Britain’s post-Brexit trade policy.
Officials Boris Johnson and Scott Morrison are expected to announce the agreement on Tuesday despite concerns from farmers in both countries over the agreement.
British farmers are scared Paying taxes, the free entry of Australian cattle, lamb and sugar could damage the agricultural sector. They are also concerned about ethical concerns in Australia, including the use of hormones produced by breeders.
In Australia, meanwhile, farmers have warned that the idea of pardoning prisoners in Britain to work in agriculture while renewing their visas could increase unemployment, which is detrimental to the sector.
Johnson and Morrison discussed the main points of the agreement at a dinner on Downing Street on Monday night, which makes the announcement public, officials told the Financial Times.
“The two executives have had a good meeting in London overnight and have resolved some of the issues related to the FTA,” spokesman Dan Tehan, Australia’s trade minister, said on Tuesday.
“Their partnership is successful in jobs, businesses [and] free trade and what two democratically elected democrats can do together. ”
If a trade agreement can be signed within a year, it could be the first agreement between the two countries from the UK starting in the EU in January 2020. The trade announced by Japan and Norway was built on the negotiated arrangements when the UK was a member of the EU.
Mark Melatos, a professor at the University of Sydney, says Australian cooperation is important in the UK, but a a two-edged sword.
“On the one hand, it shows that the UK can enter into a bilateral alliance after Brexit, even with its close ally, Australia. This is an important political force,” he said.
“On the other hand, the agreement will serve as a model for what the UK will negotiate. Any agreement in Australia will form the basis for future negotiations with the US, EU and much more.”
The Australian Agricultural Company, which sells the country’s largest animals, has predicted that a ten times as much as in cattle to the UK if a zero-tariff agreement was approved.
But Australian farmers have objected to Britain’s demand that it repeal a requirement for UK creditors to work at least 88 days on farms in order to continue their holiday visa.
David Littleproud, Australia’s agriculture minister, said on Tuesday that Canberra would make arrangements to replace the nearly 10,000 British people who work on Australian farms and other jobs if needed in trade.
The government has estimated that a free trade agreement with Australia could also benefit 0.01-0.02% of total profits over 15 years, or £ 200m- £ 500m more than the 2018 levels.
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