MP hits back at SNP “scaremongering” over free trade deal
Banff and Buchan MP David Duguid has hit back at “scaremongering” from the SNP over prospects of a UK-Australia Free Trade Deal (FTA).
Negotiations continue on the proposed UK-Australia FTA which would remove tariffs on all UK exports to Australia, saving British businesses millions of pounds and supporting jobs across the UK. This will remove the 5% tariff on whisky, gin, biscuits and cars, the 21% tariffs on cheese and bring huge export opportunities to the UK’s agri-food sector – particularly in Scotland.
The government’s scoping assessment carried out before negotiations began found that the whole United Kingdom benefits in all modelled scenarios.
Scotland’s thriving financial service providers will benefit from better access through digital and services provisions in this deal, alongside the new investment provisions which will bring new opportunities to Scotland. Tariffs on iconic goods like Scotch Whisky will be removed and with simplified customs procedures this will help boost Scottish exports and open up new markets.
Concerns have been raised from farmers and farmers’ unions which have been heard by and engaged with by UK Government Ministers and Officials.
The UK Government maintains that a trade agreement with Australia will not undercut UK farmers or compromise our high standards. Internal Whitehall analysis shows little to no impact once projected productivity improvements are taken into account. And, the UK Government has repeatedly reaffirmed the Conservative manifesto commitment to not compromise on animal welfare, food safety and environmental standards through any trade deal
What benefits will this deal bring British farmers?
- This deal is a gateway to joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Joining this high-standards free trade agreement of 11 Asia-Pacific nations will mean lower tariffs for British exports to those rapidly growing markets and on 2 June, it was announced that the CPTPP nations have agreed that UK accession to the group will commence.
- Trade deals that work for Britain will bring new export opportunities to British farmers. The UK produces highly sought after high-quality premium food and drink products – for which our new FTAs will create new export opportunities for farmers across the UK, particularly in Scotland, by opening up new, rapidly growing markets.
- Global demand for beef and lamb is soaring. Meat consumption is projected to rise nearly 73 percent by 2050, with most of that growth in markets outside the EU.
- There is growing demand for British meat in Asia-Pacific markets. Demand for beef and lamb is increasing in the Asian market, while demand in European markets is falling.
Just 0.15 per cent of all Australian beef exports arrive in the UK – and Australia aren’t using all of their tariff-free quota for lamb that they have already. Meaning they could already be exporting more lamb tariff-free, but choose not to.
Any additional Australian imports of beef would likely displace current imports from the EU, not British produce. Imports from the EU account for the majority of beef imports into the UK with 237,928 tonnes imported in 2020 making up 98 per cent of total beef imports into the UK that year. We are more likely to see prime steak for restaurants, rather than cheap imports flooding supermarket shelves.
Around 75 per cent of Australian beef exports, and 70 per cent sheep meat are imported to Asia-Pacific markets, where the costs of beef production can be twice as high than the UK in some markets. The prospect of substantive Australian imports of beef and sheep meat is very low.
There are strong ‘Buy British’ trends in the UK and strong support for British farmers – 81 per cent of beef sold in the UK is under the British logo, with Aldi, Budgens, the Co-op, Lidl, M&S, Morrisons and Waitrose all using 100 per cent British beef.
Scottish Conservative MP for Banff and Buchan David Duguid said:
“It is typical that not two weeks into the new Scottish parliament and the SNP have returned to form – scaremongering about a free trade deal which will actually bring huge benefits and opportunities to Scottish exporters, including our agricultural sector.
“In the last 20 years, the SNP have never supported any free trade by the UK or even by the EU, cementing their reputation as isolationists and depriving our industries with the fantastic opportunities tariff-free access to growing global markets provides.
“UK Government and officials hold regular talks with Scottish farmers, NFUS and other food and drink trade bodies. Their concerns have been heard and are being addressed.
“While I will continue to work with UK Government and our local food and drink producers to realise the opportunities of the future, it is sad that the only opportunities the SNP seek are for political point-scoring.”