Source · Select Committees · Welsh Affairs Committee
Recommendation 18
18
Rejected
Publish an action plan by May 2028 supporting Welsh farms against FTA impacts
Recommendation
As the Tariff Rate Quotas progress towards a highly liberalised trade arrangement, the UK Government, in consultation with the Welsh Government and Welsh industry, should publish an action plan which sets out how farms in Wales will be supported to compete in the new market and how any negative economic effects will be identified and mitigated. This plan should be prepared with the acknowledgment that its purpose is not only to protect individual Welsh farms but to maintain the economic and social wellbeing of rural communities across Wales. The action plan should be published by the end of May 2028 which represents the mid-point between implementation of the Australia and New Zealand Free Trade Agreements and the first significant milestone in the liberalisation of beef and sheep meat Tariff Rate Quotas. (Recommendation, Paragraph 91)
Government Response Summary
The government rejects the need for an action plan, stating there is no evidence of negative impact on Welsh beef or lamb from current trade agreements, highlighting existing safeguards and its commitment to increasing export opportunities.
Government Response
Rejected
HM Government
Rejected
Defra carefully monitors trade data, including the usage of the quotas under the trade agreements with Australia and New Zealand. There is no evidence that the Trade Agreements with Australia and New Zealand have had an impact on Welsh beef or lamb production. The quotas for beef and lamb have not been fully utilised since the agreements came into force, although imports of Australian beef and lamb, and New Zealand beef have risen under the agreement. Government analysis, and preliminary trade data, suggests that these imports from Australia and New Zealand are primarily displacing other imports—mainly from the EU—more than impacting on domestic UK production. UK cattle prices continue their strong performance, which suggests these imports are not having a significant impact on the domestic market. It also remains the case that the majority of Australian and New Zealand meat is destined for other markets, especially in Asia, which are closer geographically and have growing demand for red meat. The Free Trade Agreements with Australia and New Zealand include several safeguards. In addition to the quota volumes for beef and lamb in years 1–10 of the agreement, there is a product specific safeguard for those products in years 10–15 of the agreement as well as a general bilateral safeguard mechanism, which provides a temporary safety net for industry if they face serious injury, or threat thereof, from increased imports as a direct consequence of the FTA. The UK government is committed to increasing export opportunities for British food and drink, including from Wales – which produces some of the UK’s best food and drink. We have a network of agri-food attachés based in Embassies and High Commissions around the world to support export opportunities. We are also negotiating new trade agreements to support UK exports. For example, the trade agreement with India, signed in July this year, will eliminate tariffs on UK lamb exports as soon as it comes into force.