The UK and Australia trade deal could set the bar for future agreements and may be something that others will look to emulate, NFU Cymru has said to the Welsh Affairs Committee.
The union's president John Davies appeared before the House of Commons’ committee as part of a session looking at the implications of the free trade deal for Wales.
The UK and Australia reached an agreement last month which includes a 15-year cap on tariff-free imports despite concerns from farmers over lower-standard goods.
The free trade agreement marks the first major trade deal negotiated by the UK since it left the European Union.
Giving evidence to the Welsh Affairs Committee, Mr Davies said that the UK had to be 'really careful' as the agreement could set the bar for future trade deals.
Referencing last year when there was serious carcass imbalance due to the pandemic, he spoke of how even a small increase in imports of certain cuts of meat had the potential to create imbalance problems on the domestic market once again.
In terms of production standards, Mr Davies said that when it came to systems and scales of production, Australia was very different compared to the UK.
For example, over half the cattle in Australia were on feed lots consisting of over 10,000 animals, he warned the committee.
And when it came to antibiotic usage, the levels used in Australia were significantly higher, with Australian farmers also having a greater range of plant protection products available to them than UK producers.
Mr Davies also took the opportunity to speak about the work of the Trade and Agriculture Commission (TAC), re-iterating the union’s desire to see the government’s response to the TAC’s report of March 2021.
Additionally, he expressed his eagerness to see the Statutory Trade and Agriculture Commission established and, in a position, to critically examine the detail of the Australia deal and future trade agreements.
Mr Davies said that while there would be competition, farmers in Wales were in a strong position and had an opportunity to produce high quality protein from grass-based systems.
Speaking after the meeting he said: “I am grateful to the committee for the opportunity to appear before them.
"My key messages are all around the need to ensure that Wales’ farmers are able to compete on a level playing field and I hope that that message has been heard loud and clear."
It comes as MPs who sit on the Environment, Food and Rural Affairs Select Committee (EFRA) called for 'proper parliamentary scrutiny' on future trade agreements.
And the NFU has also urged the government to issue 'urgent answers' on the UK-Australia trade deal amid fears over lower-standard agri-imports.
President Minette Batters said: “We continue to maintain that a tariff-free trade deal with Australia will jeopardise our own farming industry and could cause the demise of many, many beef and sheep farms throughout the UK.
"This is true whether tariffs are dropped immediately or in 15 years’ time," she added.
