Senate Estimates hearings have revealed red wine producers across Australia have been let down by the Morrison-Joyce Government.

DFAT officials have sensationally revealed they knew for at least a month before negotiations on the UK-Australia FTA were concluded that the UK was proposing to impose higher excise duties on alcohol, including bottled red wine.

The proposed changes to the UK tax regime on wine apply a higher tax rate on wines with higher alcohol, meaning wine produced in warmer climates – such as Australia – will be taxed more heavily their European competitors.

This means that all the competitive advantages the Australian wine industry gained by tariff reduction in the FTA have been entirely wiped out by the proposed tax increase.

Analysis from the Australian wine sector show that the tariff reduction might have given a benefit of $43 million, which is dwarfed by the $160 million impost on Australian wine under the proposed new UK wine tax.

Labor calls on the Minister to use whatever bargaining power Australia has with the UK to save our wine producers from this incoming tax burden.  But as FTA negotiations have concluded, Australia is not in a good position.

DFAT officials also confirmed in Senate Estimates that the Trade Minister is considering rushing the Australia-UK Free Trade agreement through without regular parliamentary scrutiny.

Despite longstanding practice of the Joint Standing Committee on Treaties considering new treaties for more than 20 joint sitting days, Dan Tehan is considering rushing the agreement through the Parliament in the two joint sitting days before the election.

Noting that the UK ratification process will also take months to conclude, there is no justification for this rush other than for cheap, superficial, political point-scoring.

Labor calls on the Minister to rule out rushing the A-UKFTA through the Parliament and commit to ensuring JSCOT has a chance to comprehensively scrutinise the Agreement to ensure it truly delivers the benefits that the Morrison-Joyce Government claims it will.

THURSDAY, 17 FEBRUARY 2022