The UK has offered trade deal terms to Australia under which both countries would phase out taxes on imports 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. But the dispute was apparently resolved after Boris Johnson pushed for unity.
International Trade Secretary Liz Truss formally made the UK offer to her Australian counterpart on Friday and would like a deal in place by the time the UK hosts the G7 summit in June.
If accepted, it would also lead to quotas on tax-free trade between the two countries to be phased out.
Speaking on a visit to Portsmouth, Mr Johnson 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.”
National Farmers Union president Minette Batters said:
“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.”
A Department for International Trade spokesperson said:
“Any deal we sign with Australia will include protections for the agriculture industry and will not undercut UK farmers or compromise our high standards.
“Typically, any tariff liberalisation is staged over time, with safeguards built in. We will continue to work with the industry, keeping them involved throughout the process and helping it capture the full benefits of trade.”
Source: BBC News