Boris Johnson's post-Brexit trade deals savaged as they finally come into force

30 May 2023 , 23:01
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Boris Johnson agreed the broad terms of a free trade deal with Australia in 2021 (Image: Andrew Parsons / No10 Downing Street)
Boris Johnson agreed the broad terms of a free trade deal with Australia in 2021 (Image: Andrew Parsons / No10 Downing Street)

Labour has savaged the “mess” of the UK’s first post-Brexit trade deals which came into force today.

In a stark warning, Shadow International Trade Secretary Nick Thomas-Symonds urged ministers to step up support for exporters.

The Labour MP has written to Business and Trade Secretary Kemi Badenoch about “significant concerns” raised by the Australian and New Zealand free trade agreements.

He told her: “It is in the hands of your Government to act now.”

The Labour frontbencher highlighted warnings that have been raised by British farmers who say the deal will “heap further pressure” on them.

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“When it comes to agriculture, it appears that the Australians have achieved all they have asked for and British farmers are left wondering what meaningful benefits have been secured for them,” the National Farmers Union told a parliamentary inquiry into the Australian agreement.

"There is little in this deal to benefit British farmers. This will just heap further pressure on British farm businesses already facing serious challenges."

Boris Johnson's post-Brexit trade deals savaged as they finally come into forceShadow International Trade Secretary Nick Thomas-Symonds highlighted warnings that have been raised by British farmers in his letter to government

George Eustice - the minister who helped negotiate the trade deal with Australia - has even admitted it "was not actually a very good deal" as the UK "gave away far too much for far too little in return".

The former Environment Secretary said the UK did not actually need to give Australia nor New Zealand full liberalisation in beef and sheep as "it was not in our economic interest to do so".

From Wednesday, tariffs on all UK goods exports to Australia and New Zealand will be removed and red tape slashed for digital trade and work visas.

British goods from across the country including Beano comics, Penderyn single malt Welsh whisky, Brighton Gin and The Cambridge Satchel Co. bags are among the first to be shipped under the new arrangements.

Ministers say young Brits will also benefit from opportunities in Australia under the shared Youth Mobility and Working Holiday Maker visa schemes.

Mr Thomas-Symonds said: “The Conservatives made a mess of the trade negotiations with Australia - and that's the assessment of their own Ministers who did the negotiating.

"Exports to Australia are falling, based on the latest stats, and we knew the trade deal has huge risks for our farmers, who fear their businesses will be left really struggling. Get this wrong and the Australian trade deal risks worst of all worlds for UK businesses.

Boris Johnson's post-Brexit trade deals savaged as they finally come into forceKemi Badenoch said it was a "historic" day as the first post-Brexit deals come into effect (Thomas Krych/ZUMA Press Wire/REX/Shutterstock)

"That's why the government need to get a grip and work in partnership with business to grasp any trade opportunities in Australia and New Zealand.

8 money changes coming in February including Universal Credit and passport fees8 money changes coming in February including Universal Credit and passport fees

"The OBR predicts U.K. exports will fall by 6.6 per cent in 2023, a hit of over £51bn. We can't go on like this. That's why a Labour government would have a mission to deliver the highest sustained growth in the G7. Plans for this will include boosting green exports and targeting better trade with key allies like Australia and New Zealand."

Sue Davies, Head of Consumer Rights and Food Policy at Which?, said: “The success of trade agreements will be judged on what they deliver for ordinary people in their everyday lives, not just the export opportunities they provide.

“The government must use these trade deals to strengthen consumers’ rights and protections when buying goods and services from Australia and New Zealand and ensure none of our current standards are weakened - especially around food as this is a key aspect of both agreements.”

Mrs Badenoch said: "Today is a historic moment as our first trade deals to be negotiated post-Brexit come into effect.

"Businesses up and down the country will now be able to reap the rewards of our status as an independent trading nation and seize new opportunities, driving economic growth, innovation and higher wages."

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Sophie Huskisson

The economy, International Trade, UK Trade

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