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https://www.ft.com/content/8c5f7a0c-6be8-42be-b2de-fe721dc08701
People briefed on the internal discussions said Liz Truss, international trade secretary, regarded the issue as a “crunch point”. One government official said: “Liz argues that if you can’t get a good trade deal with Australia, who can you get one with?”
But she is meeting stiff opposition from George Eustice, the environment secretary, and Michael Gove, the Cabinet Office minister, who have warned of the political fallout from a zero-tariff deal, the two insiders said.
UK officials said Australian and New Zealand negotiators were holding firm on demands for full tariff liberalisation, which Truss was under pressure to grant in order to meet the G7 deadline, perhaps phased in over a 10-year period.
The government estimates that a free trade agreement with Australia would be worth an additional 0.01-0.02 per cent of GDP over 15 years — or £200m-£500m more than 2018 levels. “Basically we’re talking about signing off the slow death of British farming so Liz Truss can score a quick political point,” said one insider opposed to the deal.
“If we can’t do a proper trade deal even with our kinsmen Down Under, we might as well throw in the towel,” he wrote in the Sunday Telegraph.
But the deal would set important precedents for future negotiations with the USA and the Mercosur block in Latin American countries, which includes Brazil, a big beef producer. “If these deals with Australia and New Zealand don’t get done because of domestic opposition, that pretty much says the UK is not doing anything with global Britain. Because if we can’t do these, well, in truth, everything gets more difficult from here,” he added.
People briefed on the internal discussions said Liz Truss, international trade secretary, regarded the issue as a “crunch point”. One government official said: “Liz argues that if you can’t get a good trade deal with Australia, who can you get one with?”
But she is meeting stiff opposition from George Eustice, the environment secretary, and Michael Gove, the Cabinet Office minister, who have warned of the political fallout from a zero-tariff deal, the two insiders said.
UK officials said Australian and New Zealand negotiators were holding firm on demands for full tariff liberalisation, which Truss was under pressure to grant in order to meet the G7 deadline, perhaps phased in over a 10-year period.
The government estimates that a free trade agreement with Australia would be worth an additional 0.01-0.02 per cent of GDP over 15 years — or £200m-£500m more than 2018 levels. “Basically we’re talking about signing off the slow death of British farming so Liz Truss can score a quick political point,” said one insider opposed to the deal.
“If we can’t do a proper trade deal even with our kinsmen Down Under, we might as well throw in the towel,” he wrote in the Sunday Telegraph.
But the deal would set important precedents for future negotiations with the USA and the Mercosur block in Latin American countries, which includes Brazil, a big beef producer. “If these deals with Australia and New Zealand don’t get done because of domestic opposition, that pretty much says the UK is not doing anything with global Britain. Because if we can’t do these, well, in truth, everything gets more difficult from here,” he added.
