Source · Select Committees · Welsh Affairs Committee
Recommendation 19
19
Accepted
Disparity in production standards threatens competitiveness of Welsh farming
Conclusion
We are concerned about the perceived disparity in production standards and the levels of financial support received by farmers in countries that the UK Government is negotiating trade agreements with. We are also concerned that lower-cost imports produced to less stringent standards could enter the UK market at prices below the cost of domestic production in Wales, potentially undermining the competitiveness and long-term viability of Welsh farming. (Conclusion, Paragraph 96)
Government Response Summary
The government states it carefully monitors trade data and has found no evidence that trade agreements with Australia and New Zealand have negatively impacted Welsh beef or lamb production, with imports mainly displacing EU products. It highlights existing safeguards within the agreements.
Government Response
Accepted
HM Government
Accepted
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.