The Wizard of Aus

It has been announced that a framework agreement has been reached between the UK, maybe GB and Australia, for a trade deal.

It would eliminate almost all tariffs for Australian goods, making things like, er, wine and swimming costumes slightly cheaper. It would probably also allow sub-standard meat and other agri products into the UK.

I say possibly, as the detail is secret, and not even Parliament can or will be able to subject the deal to scrutiny.

Promises made to the farming industry by the UK Government and Conservative Ministers would be broken.

IN addition, if sub-standard products were allowed into Britain, then regulations between Britain and the EU, and NI, would have to be strengthened to ensure that all prodcts entering the SM was according to their regulations.

This is the real effect of divergence.

The loss of trade to the EU could be as much as 15% of GDP, so how much would the very best deal with Australia counter that? 0.02%.

Or £1.22 of savings per household, per year.

I wrote years ago that any food could agree a trade deal, but getting one that was better for the UK required skill and leverage. The UK has Liz Truss on the case. And former Australian trade negotiator, Dmitry Grozoubinski, states that what Australia has won in theis deal is unpresedented in global trade negotiations, in getting most of what it wants and having to surrender very little to get it.

So, as ever, an industry or secotr will be thrown under the red bus to get some positive headlines today. After the mess of the WA, NIP and TCA, the UK Government clearly hasn't leaned that negotiating at speed delivers very poor results. Negotiate at speed, repent at leisure.