First report - Australia FTA: Food and Agriculture
Select Committee
Environment, Food and Rural Affairs Committee
HC 23
17 June 2022
Recommendations
13 results
2
Deferred
Para 22
While the Government has argued that it has secured three safeguards to protect farmers it...
Recommendation
While the Government has argued that it has secured three safeguards to protect farmers it appears to us that only the general bilateral safeguard mechanism offers any real protection. The volumetric safeguards would only kick in if there were a …
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Government Response Summary
The government states that the technical processes for how the bilateral safeguard mechanism will operate are currently under review and that Parliament will be updated on the outcome.
3
Accepted in Part
Para 25
In future negotiations the Government should ensure that its approach to negotiating changes to tariff...
Recommendation
In future negotiations the Government should ensure that its approach to negotiating changes to tariff free access to the UK meat market is more sophisticated than just weight of gross products and can differentiate between different cuts of meat—by using …
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Government Response Summary
The government states each FTA is bespoke and may include equivalence approaches, like Carcass Weight Equivalent, but there is no inherent advantage and final outcomes will depend on negotiations. They cite the UK-Australia trade deal includes an alternative mechanism for sheep meat to give added protections to UK producers.
4
Acknowledged
Para 33
While the potential for increased agri-food exports from the UK-Australia FTA deal appears modest, the...
Recommendation
While the potential for increased agri-food exports from the UK-Australia FTA deal appears modest, the UK Government must support the food and farming industry to take maximum advantage of the opportunities that do exist. We welcome the Government’s plans to …
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Government Response Summary
The government states its commitment to supporting the agri-food sector to increase the value of UK exports and is embracing fast-growing markets, citing the UK's accession to the CPTPP as an example.
5
Acknowledged
Given the Government estimates that the net impact of the deal across all agriculture and...
Recommendation
Given the Government estimates that the net impact of the deal across all agriculture and food related sectors is a reduction of £278m, we believe the Government should aid the sector to increase the value of UK food and drink …
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Government Response Summary
The government is committed to supporting the agri-food sector to significantly increase the value of UK exports by embracing fast-growing markets and challenging business in a ‘Race to a Trillion’. The new Food and Drink Export Council will drive a data-led approach to UK agriculture and identify and analyze current and forecasted demand for UK products, and seeking to systematically match a UK offer to these opportunities.
6
Accepted
Para 44
We welcome the innovation of including an animal welfare chapter, in the UK- Australia trade...
Recommendation
We welcome the innovation of including an animal welfare chapter, in the UK- Australia trade deal but we believe that the Government should have pushed further on improving animal welfare standards. This was a missed opportunity for the UK and …
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Government Response Summary
The government states that the UK-Australia FTA does not compromise the UK’s high standards, highlights the non-regression and non-derogation clause on animal welfare, and mentions the joint working group to improve animal welfare standards.
7
Accepted
Para 54
The Trade and Agriculture Commission has concluded that there is likely to be an increase...
Recommendation
The Trade and Agriculture Commission has concluded that there is likely to be an increase in the import of products from Australia produced at lower cost by using pesticides that would not be permitted in the UK. We call upon …
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Government Response Summary
The government states that existing regulations and import tolerances ensure that imported produce is safe for UK consumers and that the HSE employs monitoring and enforcement activities.
8
Deferred
Para 55
We welcome the approach that the UK Government has taken to protecting the UK’s SPS...
Recommendation
We welcome the approach that the UK Government has taken to protecting the UK’s SPS requirements within negotiations on the UK-Australia FTA. It will be essential that the UK robustly maintains this position in negotiations with future trade partners who …
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Government Response Summary
The government is reviewing how to implement remaining import controls in an improved way via the new Target Operating Model, which will be published in the Autumn, and the new controls regime will come into force at the end of 2023.
10
Accepted
Para 67
However, it is regrettable that these provisions are not enforceable through the dispute resolution process...
Recommendation
However, it is regrettable that these provisions are not enforceable through the dispute resolution process if changes are made at the state level. In future deals the Government should seek to ensure environmental provision are binding on all levels of …
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Government Response Summary
The government states that environment provisions apply across the UK, including the Devolved Administrations, and it will seek similar commitments and provisions in future FTAs.
11
Acknowledged
Para 77
It is regrettable that the Government chose to engage in this negotiation without first articulating...
Recommendation
It is regrettable that the Government chose to engage in this negotiation without first articulating the core standards that the food imported into the UK must meet. Setting out core standards would have strengthened the hand of British negotiators, reassured …
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Government Response Summary
The government restates its commitment to upholding high standards and ensuring that farmers are not undercut by unfair competition, noting that all imported products need to meet the UK's SPS import requirements.
12
Acknowledged
While we believe the Government could have gone further in the UK-Australia FTA on standards,...
Recommendation
While we believe the Government could have gone further in the UK-Australia FTA on standards, it has the opportunity, through the various forums created under the agreement, to continue to discuss environmental and animal welfare issues with Australia as part …
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Government Response Summary
The government will work with all stakeholders as it prepares for the entry into force of this FTA and will provide updates to the International Agreements Committee and International Trade Committee regarding the implementation and continued operation of the Agreement on a regular basis.
13
Acknowledged
Para 89
The Government risks negotiating with one hand tied behind its back if it does not...
Recommendation
The Government risks negotiating with one hand tied behind its back if it does not take full advantage of the knowledge and intelligence that the UK sector can provide to support negotiations. The description of the agri-food Trade Advisory Group …
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Government Response Summary
The government states that meaningful two-way engagement with industry stakeholders and the devolved administrations is essential and that TAG membership is regularly reviewed, with the next review this summer.
14
Accepted
Para 92
As the Government has accepted, its Impact Assessment of the UK-Australia FTA is based on...
Recommendation
As the Government has accepted, its Impact Assessment of the UK-Australia FTA is based on a relatively limited model of its likely consequences for farming and other sectors of the economy. We welcome the Government’s review of how to improve …
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Government Response Summary
The Government accepts the recommendations of the Trade Modelling Review Expert Panel to improve the detail, rigour, and presentation of trade modelling and intends to implement them fully, leading to developments in sectoral detail, regional impacts, and adjustment pathways over time.
16
Acknowledged
We welcome the Government’s assertion that the UK-Australia FTA does not provide a blueprint for...
Recommendation
We welcome the Government’s assertion that the UK-Australia FTA does not provide a blueprint for future agreements. Nevertheless, we recognise the food and farming sector’s concerns that other major agricultural exporting nations may seek to use the existence of this …
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Government Response Summary
The government notes the restating of the Committee’s previous recommendations but offers no specific commitment beyond looking forward to continuing constructive work with the Committee.
Conclusions (3) Observations and findings — click to expand
1
Conclusion
Acknowledged
Para 21
We understand the concerns that UK cattle and sheep farmers have raised about the impact of additional competition from Australian imports under the UK-Australian FTA, but other witnesses advised us that the immediate risk appears to be limited. However, as recent events in Eastern Europe have demonstrated, circumstances can change …
Government Response Summary
The government is encouraged by the Committee's support for its proposed monitoring of the impacts of the UK-Australia FTA post-implementation.
9
Conclusion
Accepted
Para 66
We welcome the commitment that the Minister made to ensuring that UK trade deals protect the natural environment through a non-regression obligation on relevant regulations and standards that is enforceable with sanctions for non-compliance. We call upon the UK Government to include such provisions in future FTAs to help ensure …
Government Response Summary
The government states that the UK-Australia FTA includes enforceable commitments to ensure neither country can derogate from environmental laws to promote trade and that it will seek similar commitments in future FTAs.
15
Conclusion
Acknowledged
We found the TAC’s report extremely helpful and thank Professor Bartels, and his colleagues, for their work. We are concerned that Professor Bartels had to use university funds to support the TAC’s work on the Australia FTA. It is essential that the TAC has sufficient, independent, resources to carry out …
Government Response Summary
The government is fully supportive of the Trade and Agriculture Commission (TAC) and will continue to consider ways to further support the Commission with respect to future agreements and will continue to discuss with the TAC what appropriate level of support is required.