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Morrison and Johnson to discuss trade deal

Daniel McCullochAAP
Morrison and Johnson are preparing to discuss trade negotiations after catching up at the G7 summit.
Camera IconMorrison and Johnson are preparing to discuss trade negotiations after catching up at the G7 summit. Credit: EPA

Scott Morrison is heading to London for talks with Boris Johnson but an Australia-UK free trade deal might not be finalised during his visit.

The pair are preparing to discuss the trade negotiations after catching up at the G7 summit in Cornwall.

But several key sticking points must be overcome before an in-principle agreement can be reached.

Agriculture has firmed as the major obstacle, with consensus on Australian beef and lamb exports proving to be particularly elusive.

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British dairy farmers are also dubious about the trade deal.

Australian officials have described negotiations as tough and the two trade ministers have been in daily contact.

Australia wants to reach a proper agreement with genuine trade liberalisation.

Mr Morrison has indicated he does not want to sign an agreement for the sake of it, only to have the trade arguments down the track.

Australia sees it as being in the UK’s interests to establish its post-Brexit free trade credentials after withdrawing from the European Union.

Trade Minister Dan Tehan said enormous progress had been made on the agreement over the past six weeks but it was unclear whether a deal could be reached this week.

“We will continue discussions over the next 24, 48 hours in the hope of reaching an agreement,” Mr Tehan told Sky News.

“But we have said all along that we want this to be an agreement of substance, we want to make sure it is in Australia’s national interest and if we need to be patient we will be patient.”

He said there were still a number of issues to be worked through - on agriculture, services and investment - and Australia wanted to make sure the initial agreement was comprehensive.

“But if we need more time, we will take more time,” Mr Tehan said.

What is Australia seeking from a UK FTA?

What Australia wants from a free trade deal with the UK ...

  • Improve market access for Australian agricultural and industrial products
  • Reduce barriers to trade and costs through modern customs, rules of origin and trade facilitation procedures
  • Address “non-tariff” barriers such as unclear animal and plant health requirements, inconsistently applied product standards and government procurement policies
  • Better access for Australian financial and professional services
  • Establish best practice digital trade commitments
  • Greater certainty for investors through clear rules and regulations
  • Identify opportunities for small and medium sized businesses
  • Support innovation and creativity through trade and investment in intellectual property
  • Promote compliance with internationally recognised labour standards
  • Ensure high levels of environmental protection
  • Establish a country to country dispute settlement process

Main imports and exports ...

  • Australia’s main exports to the UK are gold, alcohol, lead, personal travel and professional services
  • The UK’s main exports to Australia are cars, medicines, personal travel and professional services

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