Source · Select Committees · Welsh Affairs Committee
Recommendation 3
3
Paragraph: 28
We are alert to the concerns of Welsh farmers that the gradual removal of tariffs...
Conclusion
We are alert to the concerns of Welsh farmers that the gradual removal of tariffs on Australian beef and lamb potentially poses a competitive threat. However, this is unlikely to manifest in the short term, and it is far from certain that the UK will be flooded with Australian beef and lamb imports in the longer-term. The UK Government should clarify, in the explanatory memorandum accompanying the final treaty text, what conditions would need to be met for agricultural safeguards to be applied in years 10–15 after the agreement comes into force. In response to this report, the UK Government should also explain how it intends to work with the Welsh Government to ensure that its wider trade strategy is coherent with ambitions to make farming more productive and sustainable.
Paragraph Reference:
28
Government Response
Acknowledged
HM Government
Acknowledged
2 Third Special Report of Session 2021–22 British food and drink is the best in the world and as an independent trading nation we’re seizing new opportunities for British farmers that were previously denied to us. Our goal is a long-term sustainable future for British farming, based on high standards, competitiveness and productivity, which meets the growing demand for our world-class produce. This deal with Australia will benefit the agri-food industry by removing tariffs on all UK goods whilst protecting important UK agricultural sensitivities. Any deal we sign will include protections for the agriculture industry and will not unfairly undercut UK farmers or compromise our high standards. For beef, in the subsequent 5 years (year 11–15 after entry into force) a product specific safeguard will be applicable to beef imports exceeding a volume threshold rising in equal instalments from 122,000 in year 11 to 170,000 tonnes in year 15, levying a safeguard duty of 20% for the rest of the calendar year if the volume is exceeded. For Sheep meat, in the subsequent 5 years (year 11–15 after entry into force) a product specific safeguard will be applicable on sheep meat imports exceeding a volume threshold rising in equal instalments from 85,000 in year 11 to 125,000 tonnes in year 15, levying a safeguard duty of 20% for the rest of the calendar year if the volume is exceeded. Additionally, under the FTA, the UK has provided multiple forms of protection including a general bilateral safeguard mechanism which will provide a safety net for industry if they face serious injury from increased imports as a direct consequence of the FTA. This applies to all products. Global safeguard measures can be applied if there is serious injury or threat thereof, from an unforeseen surge of imports on any product, from any trading partner. Rather than it being an FTA-specific form of protection like the general bilateral safeguard mechanism, it is a tool which can be deployed if the criteria is met under the WTO Agreement on Safeguards.