Tariffs on Scotch whiskey exports to Australia will be removed as part of a new post-Brexit trade deal.
Industry bosses said removing the 5% tariff would give the industry a “big boost”.
Scotch whiskey exports to Australia have doubled in the past 10 years, with around £ 126million worth of drinks shipped in the last year alone.
However, farmers fear the deal will prevent small family businesses from competing with a flood of cheap food imports.
National Farmers Union Scotland vice-chairman Robin Traquair said there would be “hoots and screams” if British farms adopted some of the farming techniques used in Australia.
He added: “I want to know the guarantees of this agreement and I want to know what the welfare standards will be.”
In the run-up to the deal, a split has emerged in Cabinet between Commerce Secretary Liz Truss and Environment Secretary George Eustice, who is concerned about the impact on farmers.
Cabinet Minister Michael Gove also fears the deal will fuel demands for Scottish and Welsh independence.
Announcing the deal today, Downing Street said farmers would be protected by a cap on duty-free imports for 15 years, using “tariff quotas and other guarantees.”
Boris Johnson said: “Today marks a new dawn in UK relations with Australia, underpinned by our shared history and shared values.
“Our new free trade agreement opens up fantastic opportunities for UK businesses and consumers, as well as young people who want the chance to work and live on the other side of the world.
“This is global Britain at its best – looking outward and making deals that deepen our alliances and help ensure every part of the country rebuilds itself better after the pandemic. “
Under the deal, Britons under 35 will be able to travel and work in Australia more freely, opening up exciting opportunities for young people.
Parliament will have the opportunity to examine the agreement in detail once the text is published, accompanied by an impact assessment and an explanatory memorandum.
