UK set to offer Australia free-trade deal

The UK is to offer Australia a trade deal under which both countries would phase out taxes on imports over the next 15 years, the BBC understands.

Limits on the amount of goods being sold would also be removed.

UK beef and lamb producers have raised concerns that they will be undercut by larger Australian farms.

The cabinet was also reportedly split on the issue, but Home Secretary Priti Patel said ministers were now "united" in pushing for a deal.

Prime Minister Boris Johnson argued for unity at a meeting on Thursday, following reports that Environment Secretary George Eustice was at odds with International Business Secretary Liz Truss over the possible impact of a deal on farmers.

Downing Street said ministers were now in agreement, while negotiations with Australia were still "still ongoing".

Ms Patel said: "The government is united on every single level. We are working at every level to secure the best outcome for our country."

The government is keen to strike as many trade deals as possible following Brexit, and Ms Truss wants an agreement with Australia in place by early June.

In 2019-20, trade in goods and services between Australia and the UK was valued at £20.1bn, and both sides are hoping to expand this amount considerably.

Currently, trade in meat between the two countries is very small, but the National Farmers' Union has warned that pitting small-scale UK beef and lamb producers against vast Australian cattle and sheep stations could force many of them out of business.

Approximately 0.15% of all Australian beef exports go to the UK, and, last year, 14% of sheep meat imports to the UK came from Australia.

The Scottish and Welsh governments have both urged Mr Johnson to ensure UK farmers are not left exposed by any free-trade deal.

The prime minister's spokesman said: "Any agreement would include protections for our agriculture industry and won't undercut UK farmers.

"We want a deal that is good for the British public and any agreement would have protection for the agriculture industry."

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