BBC News 21 May 2021
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| Australia's mining industry is a major driver of exports to the UK |
The UK is to offer Australia a trade deal under which both countries would phase out import taxes over 15 years.
The cabinet was reportedly split on what terms to propose, amid concerns UK beef and lamb farmers could be undercut by larger Australian producers.
Downing Street said the cabinet was now in agreement, but the National Farmers Union said ending taxes on meat imports would destroy many UK farms.
Ministers are keen to strike as many trade deals as possible following Brexit, and International Trade Secretary Liz Truss wants one in place with Australia by early June.
But she had reportedly been at odds with Environment Secretary George Eustice over the possible impact on farmers.
Speaking on a visit to Portsmouth, the prime minister said: "We are certainly looking at doing free trade deals around the world.
"They present a fantastic opportunity for our farmers, for businesses of all kinds, for our manufacturers. We should see these new openings not as threats but as opportunities."
Under the deal set to be offered to Australia, tariffs - taxes on imports - would be phased out over 15 years, with quotas - limits - on sales between the two countries going over the same period.
In 2019-20, trade in goods and services between Australia and the UK was valued at £20.1bn, and both sides are hoping to expand this amount considerably.
Currently, metals, wine and machines form the biggest goods exports from Australia to the UK, while Australia's main UK imports are cars, medicines and alcoholic drinks.
Trade in meat between the two countries is small, but the National Farmers' Union (NFU) has warned that pitting small-scale UK beef and lamb producers against vast Australian cattle and sheep stations could force many of them out of business.
Approximately 0.15% of all Australian beef exports go to the UK, and, last year, 14% of sheep meat imports to the UK came from Australia.
NFU president Minette Batters said removing tariffs on these products would "have a massive impact on British farming".
She added: "We continue to maintain that a tariff-free trade deal with Australia will jeopardise our own farming industry and will cause the demise of many, many beef and sheep farms throughout the UK. This is true whether tariffs are dropped immediately or in 15 years' time."
'Distinct advantages'
The Scottish and Welsh governments have both urged Mr Johnson to ensure UK farmers are not left exposed by any free-trade deal.
And Northern Ireland's agriculture minister, Edwin Poots, said he was "strongly opposed" to ending tariffs and quotas.
But Conservative MP Neil Parish, chairman of the Commons Environment, Food and Rural Affairs Committee, said UK farmers could succeed in the beef market by exporting more "higher-end" cuts, such as sirloin, to Australia.
He argued that current tariffs should stay in place for a few years to give them time to adapt to increased competition.
The prime minister's spokesman said: "Any agreement would include protections for our agriculture industry and won't undercut UK farmers.
"We want a deal that is good for the British public and any agreement would have protection for the agriculture industry."
