PM Boris Johnson will admit tomorrow that if he fails to get a top-notch Canada-style EU trade deal, he’ll settle for a second-rate Australian one.
Canadians can sell 99 per cent of goods to Europe duty-free, while under the Aussie model most items are hit by punishing tariffs.
A Government source said: “There are only two likely outcomes – a free trade deal like Canada or a looser arrangement like Australia. We are happy to pursue both.”
The PM will unveil his game plan for the next 11 months of EU trade negotiations on Monday, telling an audience of bosses and foreign diplomats he wants a Canada deal.
He will accuse the EU of moving the goalposts by insisting we obey some of its rules, making a gold-plated Canada deal less likely.
Mr Johnson will say: “There will be no alignment, no juris-diction of the European courts, and no concessions.”
A Whitehall source said: “The Australian deal is World Trade Organisation rules with knobs on.”
The PM will now redouble efforts to get trade deals with the US, New Zealand, Australia and Japan.
He will also say “no achievement lies beyond our reach” and claim Liverpool and Glasgow will thrive with more transatlantic trade.
Oh Canada
Status: Negotiated Under the Comprehensive Economic and Trade Agreement, 99 per cent of goods traded between Canada and the EU are duty free. This saves Canadian importers £529million a year in taxes.
Canadian imports of duty-free EU cheeses are up from 18,500 to 32,000 tonnes. Previously banned Canadian sweetcorn will now go to Europe.
Aussie rules?
Status: Under negotiation Australia wants open access to EU markets for its beef, wheat and sugar, but most goods would still be taxed.
In return, Australian cheesemakers will not be able to use the names feta, Gruyère, Roquefort and Gorgonzola.
But “Scotch beef” and “Scotch lamb” will be allowed now the UK has left the EU.
