UK trade deals soon come into force amid farming industry's concern

Australian and New Zealand farmers will see far greater benefits compared to UK farmers, the industry has warned
Australian and New Zealand farmers will see far greater benefits compared to UK farmers, the industry has warned

The UK's trade agreements with Australia and New Zealand will come into force at the end of May, amid growing concern for sensitive sectors like beef and lamb.

The trade agreements that the UK concluded with both countries in 2022 will enter into force on 31 May 2023, the government has confirmed.

Since then, the UK farm leaders have strongly criticised the outcomes of the negotiations as they eliminate tariffs for agricultural products.

This means that for sensitive sectors like beef and lamb, dairy and horticulture, in time, there will be no limit to the number of goods Australia and New Zealand can export to the UK.

The NFU had warned that there was little in those trade deals to benefit British farmers.

The union said that UK farm businesses faced significantly higher production costs than farmers in Australia and New Zealand.

And margins "were likely to tighten further" in the face of rising input costs, higher energy bills and labour shortages.

NFU President Minette Batters said: “Confirmation that the UK’s new trade deals will come into force at the end of May brings into sharp focus the need for government to monitor the impacts for our farmers."

Mrs Batters added that it was 'clear' that UK farmers had "very little to gain" from these two deals, adding that government must open up markets where there's a "genuine opportunity" for farmers.

“We must ensure that the government's commitment to uphold the UK’s food safety standards in all deals it negotiates remains unwavering," she said.

"We need to see the government working with farmers to develop a set of core environmental and animal welfare standards that it can seek to safeguard through forthcoming FTAs and its general import policy under its current WTO commitments."

It follows a report published by the AHDB last year which warned that New Zealand farmers would see far greater benefits compared to UK farmers.

The report took a detailed look for the first time at the potential implications of the New Zealand trade deal on UK agriculture.

David Swales, AHDB head of strategic insight, said: “It’s clear that New Zealand farmers will benefit from this trade deal with UK farmers negatively impacted.

"Our analysis shows that the impact should be modest, but there are risks of a more substantive impact in scenarios where New Zealand’s trade with China is disrupted.”