UK has handed Australia whip hand in trade deal talks by being ‘desperate’, Boris Johnson warned

‘It gives the Australians the ability to say, ‘we’ll dig in – here are our terms, but we’re not going to budge’

Rob Merrick
Deputy Political Editor
Thursday 20 May 2021 10:35 BST
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Boris Johnson tells farmers not to be ‘frightened’ of free trade with Australia

The UK has handed Australia the whip hand in their post-Brexit trade deal talks by being “desperate” for an agreement, a trade expert is warning.

It was not “the smartest of moves” to make public that London wants signatures on a deal by the G7 summit in Cornwall, now only three weeks away, David Henig said.

“We do look desperate, I think it is a problem – setting a deadline, and our own guidelines for the G7 summit to make an announcement then, doesn’t look like the smartest of moves,” said the head of UK Trade Forum.

“It gives the Australians the ability to then say, ‘we’ll dig in, if you want your announcement on 11 June here are our terms, but we’re not going to budge’.”

The warning comes after Boris Johnson threw his weight behind Liz Truss, the trade secretary, in what she called “a sprint” to sign the deal by the June summit.

Farmers fear ruin from the plan to axe tariffs on Australian meat, produced on huge farms, allegedly to lower food and welfare standards than exist in Britain.

But the prime minister brushed aside the concerns – shared by some Cabinet ministers – and said farmers should not be “frightened of free trade”.

Mr Henig, speaking on BBC Radio 4’s Today programme, added: “I think we are desperate to get those deals – that is the modus operandi of this government.”

Under the plans being negotiated, the tariffs of 20 per cent that Australia pays on all exports of beef to the UK would be cut to zero over the next 15 years.

Michael Gove is believed to be concerned that the controversy will boost support for Scottish independence, because farmers north of the border could be hardest hit.

But ministers backing the deal say tariffs are protectionist and scrapping them will cut prices in the shops delivering a tangible benefit for leaving the EU.

A further controversy surrounds the effect on the climate emergency of encouraging greater meat-eating, when government advisers say the public needs to eat less.

The stakes could not be higher for what would be the UK’s first new trade deal since Brexit – with Mr Johnson and Ms Truss desperate to claim a victory.

But farming groups fear it would set a dangerous precedent for future agreements – particularly with the US – which would leave British farmers struggling to compete with cheap imports.

The criticism of the UK’s tactics follows the ridicule heaped on the trade secretary over a bizarre threat to make her Australian counterpart sit “in an uncomfortable chair for nine hours”.

It was briefed that Ms Truss would throw down the gauntlet over the “glacially slow” progress in negotiations, when she met Dan Tehan last month.

The source reportedly described Mr Tehan as “inexperienced” compared to Ms Truss, adding: “He needs to show that he can play at this level.”

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