UK PM Johnson backs tariff-free trade with Australia – The Times

The UK PM Boris Johnson is willing to offer Australia tariff-free access to British food markets despite warnings that it could hit the country’s agriculture, The Times reported on Wednesday.

However, George Eustice, the Environment Secretary, and Michael Gove, the Cabinet Office minister, have privately expressed reservations about the deal.

This comes after the National Farmers’ Union (NFU) assembled agricultural leaders from all four devolved nations on Tuesday to voice their concerns amid reports of a split in the cabinet over whether to approve a wide-ranging free trade deal with Australia.

“UK farmers fear soaring imports of cheaply produced Australian beef, lamb and sugar, which they say would drive down the price of food produced to a higher standard, and at a higher cost, in Britain. They are warning of implications for animal welfare and environmental standards. Sheep and beef farmers in more remote parts of Scotland and Wales are considered most at risk,” according to The Guardian.

FX implications

GBP/USD is little affected by the above news, keeping its consolidative mode intact below 1.4200, despite the UK reopening optimism.

The tepid bounce in the US dollar ahead of the FOMC minutes is weighing on most majors, with AUD/USD dropping 0.10% on a daily basis to now trade at 0.7780.