THE Trans-Pacific Partnership (TPP) agreement will provide a boost to export opportunities for Australian red meat and livestock sectors, according to industry groups.
Following the finalisation of the TPP in Atlanta, the chairs of the Australian red meat and livestock industry peak councils released a statement welcoming the deal.
That includes the Red Meat Advisory Council, Australian Livestock Exporters' Council, Australian Lot Feeders' Association, Australian Meat Industry Council, Cattle Council of Australia, and Sheepmeat Council of Australia.
Under the TPP, tariffs levied on Australian beef entering Japan will be further reduced from those negotiated under the Japan-Australia Economic Partnership Agreement (JAEPA).
The tariff on both frozen and chilled beef will fall to 9 per cent over 15 years - as opposed to the end point of 19.5pc for frozen beef and 23.5pc for chilled beef secured under the JAEPA.
All TPP member countries supplying beef to Japan will be similarly advantaged by these TPP tariff cuts. A global beef safeguard provision will apply to this trade.
In addition, processed red meat import tariffs applied by Japan, which currently range from 6-50pc, will be eliminated within 15 years; the majority of offal tariffs eliminated within 10-15 years; and the tariffs applied to live cattle imports will also be eliminated.
In Canada, the current 35,000 tonne beef quota (0pc in-quota tariff) will remain, however, the above quota tariff of 26.5pc will be phased out. Additionally, the 2.5pc tariff on Australian sheepmeat will be eliminated on entry into force (EIF).
For Australia’s trade to Mexico, the current 20-25pc beef tariff will be eliminated within 10 years; the 10pc sheepmeat and goat meat tariffs will be eliminated within eight years; the majority of offal tariffs will be eliminated on EIF; and the 10-15pc tariffs on live animals will also be eliminated on EIF.
In Peru, which represents a new market opportunity for Australian red meat, the 17pc beef tariff will be phased out and the 9pc sheepmeat and goat meat tariffs will be eliminated on EIF.
For the remaining TPP members, existing bilateral agreements have, or are already delivering market access improvements.
“These TPP benefits are most welcome and importantly complement the gains already secured for the Australian red meat and livestock industry from the recent suite of FTAs Australia has previously concluded,” the chairs of the Australian red meat and livestock industry peak councils said in a joint statement today.
“TPP members account for about 52pc of Australia’s beef, sheepmeat and offal trade and the existing import tariffs applicable to Australia’s exports destined for TPP markets represent an annual tax on the supply chain of around $1 billion. The gradual removal of this cost burden will positively impact the profitability of Australian cattle and sheep producers, processors and exporters.
“The implementation of the TPP agreement will also help to ensure that the Australian red meat supply chain remains internationally competitive - with more seamless trade rules, reduced costs and less red tape making it easier for our sector to respond to the growing consumer demand across much of the Asia-Pacific region.”