Modern Australian
The Times

There's a lot we don't know about the UK trade agreement we are about to sign

  • Written by Patricia Ranald, Honorary research fellow, University of Sydney

We’re being told about the new Australia-United Kingdom Free Trade Agreement, but not a lot about most of what’s in it.

After an in-principle agreement overnight, Australia released a five-page summary.

Australian farmers will benefit from tariff-free access to the UK for limited amounts of Australian beef, lamb, sugar and dairy products to the UK (but will have to wait ten years for the full elimination of tariffs). Australian consumers will benefit from immediate zero tariffs on products like UK whiskey and cars. Longer working holiday visas may be available for citizens from both countries.

It will take at least a month for the deal to be finalised and signed, and only after the signing will the Australian public see the full text and a parliamentary committee be given the right to inquire into it but not change it.

This secrecy continues what’s become something of a tradition — one that has attracted the ire of the Productivity Commission which in 2010 recommended the government commission and publish an independent and transparent assessment of future free trade agreements “at the conclusion of negotiations but before an agreement is signed”.

The parliament’s joint standing committee on treaties (the same one that will examine this agreement) began inquiring into the system mid last year and took many submissions, but still has not reported.

As many as 30 unseen chapters

The timing of the deal is driven by the UK’s post-Brexit desperation to sign one-on-one agreements and the greater prize of being part of the 11-nation Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) including Japan, Australia, Canada, New Zealand, Vietnam, Singapore, Malaysia, Brunei, Mexico, Chile and Peru which the UK has applied to join.

Like the CPTPP, the Australia-UK Free Trade Agreement is likely to have as many as 30 chapters, some of which restrict the ability of governments to regulate in fields including medicines, essential services and data privacy.

There's a lot we don't know about the UK trade agreement we are about to sign UK Trade Minister Greg Hands. Brian Minkoff/Shutterstock

UK trade minister Greg Hands said last month he wants the deal to include investor-state dispute settlement (ISDS) provisions of the kind excluded from the Australia-European Union current trade talks, and from the Regional Comprehensive Economic Partnership recently signed with Japan, China, South Korea, New Zealand and the 10 ASEAN countries.

The provisions would allow UK firms to sue Australian governments in international tribunals over decisions they believed infringed on their interests in a way Australian firms cold not.

In return Australian firms could sue UK authorities in a way UK firms could not.

But UK companies are more frequent users of ISDS, having launched 90 recorded ISDS cases, the third most after the US and the Netherlands. Australian companies have launched nine.

Defending the idea in the House of Commons, Hands said the UK had “never lost an ISDS case”.

There are now 1,104, known ISDS cases with increasing numbers against health and environment laws, including laws to address climate change and to protect indigenous rights.

Australians remember that the US Philip Morris tobacco company used an obscure Hong Kong investment agreement to sue Australia for billions over our plain packaging law.

Read more: Last to know: the EU knows more about our trade talks than we do

It took the international tribunal almost five years to decide that Philip Morris was not a Hong Kong company as it had claimed. Australia had to pay $12 million in legal costs.

ISDS rules in the Australia-UK treaty would give UK mining companies such as Rio Tinto the right to claim compensation for new laws to protect Indigenous heritage areas, and UK aged care companies such as Bupa the right to claim compensation for new regulations arising from the Aged Care Royal Commission.

Longer pharmaceutical monopolies

The UK has also said in its negotiating objectives that it wants to preserve its “existing intellectual property standards” which include rules that provide for longer data protection monopolies on medicines than Australia has.

The UK also supported this demand as a member of the EU before Brexit when it was published by the EU as part of the ongoing EU-Australia FTA negotiations.

Pharmaceutical companies already have 20 year monopolies on new medicines.

Read more: Planned trade deal with Europe could keep medicine prices too high

The UK has an additional “data protection” monopoly of up to ten years before data is released enabling production of cheaper competitors.

The current Australian standard is five years. Adopting the UK standard would delay the availability of cheaper medicines, costing Australia’s Pharmaceutical Benefits Scheme hundreds of millions of dollars per year.

Unless the text is released before it is signed, we won’t know whether ISDS and longer medicine monopolies are part of the deal.

The Australian government should release the text for public scrutiny and independent assessment of its costs and benefits before it is signed, so that we are able to see what is being traded away before it’s too late.

Authors: Patricia Ranald, Honorary research fellow, University of Sydney

Read more https://theconversation.com/theres-a-lot-we-dont-know-about-the-uk-trade-agreement-we-are-about-to-sign-162841

Your Baby's First Year: A Local Guide to Feeding, Sleep, and When to Get Extra Support

Ask ten parents in a Brisbane mothers' group how their baby is feeding or sleeping, and expect ten different answers.  Someone's baby sleeps throu...

Kitchen and Laundry Makeover Ideas That Don't Require a Full Renovation

Full kitchen renos are expensive — and most people don't actually need one.  They need the kitchen to stop looking like it's stuck in 2009, or t...

How Technology Is Reshaping the Modern Australian Commercial Kitchen

The commercial kitchen has always been shaped by technology. Refrigeration changed how ingredients could be stored, modern ventilation transformed k...

The Number on a Roller Blind Fabric That Nobody Explains

Somewhere in the fabric book, next to the colour name, there is a percentage. Three per cent. Five per cent. Ten per cent. Nobody explains it, most c...

What’s Trending in Men’s Jewellery This Father’s Day!

Finding a Father’s Day gift that feels personal, stylish and genuinely wearable is not always easy. While socks and novelty mugs have traditionall...

Road Signs: Understanding Their Role in Clear and Effective Signage

Effective signage and display hardware can help businesses communicate information, promote products and organise customer or visitor movement. Road...

Bottle Label Printing: Key Factors to Consider Before Your Next Packaging Run

Effective packaging begins with understanding the product, bottle material, artwork and production requirements when planning bottle label printing. H...

Planning a Long-Distance Move With Interstate Movers Melbourne

Moving between states involves more planning than a typical local relocation. Along with packing and transporting household belongings, you need to...

Understanding the Role of an I/O Controller in Industrial Automation

Modern industrial systems depend on accurate communication between sensors, machines and control systems. An I/O controller can help manage this commu...

How the Right Mining Hose Supports Demanding Operations

Mining environments place considerable demands on equipment used for material transfer, water management and processing. Hoses operating in these co...

Simple Ideas for Making Social Gatherings More Memorable

We have all been to those parties where everyone just stands around the kitchen island, staring at their phones, waiting for someone else to make a mo...

Outdoor Wall Lights: Improving Exterior Lighting Around Your Home

Lighting can influence how a room looks, feels and functions, so the right fitting should be selected according to both appearance and practical req...

Commercial Office Cleaning: Combining Routine Office Cleaning With Melbourne Service

Keeping a workplace clean requires a service that can accommodate everyday tasks as well as the particular needs of the business. Professional comme...

Caravan Sales in Queensland: How to Find the Right Caravan for Sale QLD

Caravan ownership is about more than having somewhere to sleep while travelling. For many Queenslanders, it is one of the best ways to explore regio...

What Sir Walter Buffalo Turf Actually Costs in 2026 (And Why Quotes Vary So Much)

Two quotes landed on a Hills District homeowner's kitchen table last spring for the exact same 80-square-metre backyard. One said $12 a metre. The o...

Nearly 1,300 NSW Hospital Beds Are Occupied By People Who Are Ready To Go Home

1,276 people in NSW hospitals have been medically cleared for discharge but remain in hospital because they're still waiting for NDIS or aged care sup...

National Survey Launched to Measure Operational Impacts of Federal NDIS Policy Reforms

The effects of recent NDIS reforms are beginning to move beyond policy papers and into day to day service delivery. A new national survey is asking ...

Beyond the Nappy Cake: Baby Shower Gifts That Get Used

What new Australian parents unwrap, keep, and quietly thank you for months later. Six weeks after my daughter was born, I did an audit of the baby sh...