Trade deals must improve farm profitability – Carmichael

Orkney and Shetland MP, Alistair Carmichael, has today called on DEFRA and the Department for Business and Trade to work together to ensure that any future trade deals protect farm profitability. Speaking during Business and Trade questions in the House of Commons, Mr Carmichael noted the farm profitability review recently announced by DEFRA, and warned against a US trade deal undermining such efforts.

Mr Carmichael is the Chair of the House of Commons Environment, Food and Rural Affairs Select Committee.

Speaking in the House, Mr Carmichael said:

“The Secretary of State for DEFRA recently appointed Baroness Batters [former head of the National Farmers’ Union] to lead a profitability review for farming. DEFRA has even set up a farm profitability unit. These are very welcome and necessary steps, but it is not entirely unknown for the efforts of one government department to undermine the efforts of another. 

“So before he signs any trade deal with America, will he check in with DEFRA and run the rule over what they are doing in relation to farm incomes, and ensure that he does not undermine the efforts of that department?”

Responding, the Secretary of State for Business and Trade, Jonathan Reynolds MP said:

“I absolutely agree with what he has said, I think that the moves to look at the business models around farming are a very welcome thing and I think colleagues on all sides would support that. 

“I can tell him, specifically on matters of trade, the DEFRA Secretary of State is very involved and I do also think that there is a prospect – and I know perhaps in the past the community has not always felt this – that on some of the trade negotiations we are ongoing and progressing, there are real export opportunities for UK agriculture. The quality premium, the brand that is associated with that is a market that is growing around the world, and part of our discussions in a whole range of trade negotiations are about making sure that there are more opportunities in future, but I can promise him, in terms of the overall efforts of the government in this sector, that coordination is there and is ongoing.”

Reacting after the exchange, Mr Carmichael said:

“The words from the Secretary of State are all encouraging but farmers and food producers have been burned before by mishandled trade negotiations.

“Farmers remember all-too well the slapdash approach taken by Boris Johnson in 2021. He was bulldozed by Australian negotiators and very literally sold the farm by giving into their demands, even though the government’s own analysis showed that the deal could leave our agriculture and food sectors £278 million worse off. We cannot allow that to happen again.”