Home > Australian agriculture and food exports enjoy third round of tariff cuts

Australian agriculture and food exports enjoy third round of tariff cuts

Editorial
article image

Australian agricultural and food exporters are set to have their market access gains to Japan further amplified, with the third round of tariff cuts and Australia-specific quota increases under the Japan-Australia Economic Partnership Agreement (JAEPA) taking effect from today (1 April) 2016.

Deputy Prime Minister and Minister for Agriculture and Water Resources, Barnaby Joyce, said the latest round of tariff cuts and quota volume increases would provide more benefits and opportunities to exporters of a range of agricultural commodities, including beef, dairy products, wine, seafood, nuts and horticulture products.

"Trade agreements secured by the Australian Government continue to deliver real, tangible benefits to agricultural producers and exporters," Minister Joyce said.

"Japan remains one of the world's top buyers of agricultural, food and fishery products from world markets, with imports worth US$70 billion in CY2014. Japan is also one of the world's top markets for premium food and beverage products, as I saw firsthand during my visit during last November. So the Japan-Australia Economic Partnership Agreement (JAEPA) is a big deal for Australian agriculture."

"Exporters of beef products will now be in an even stronger competitive position, with beef tariffs of 38.5 per cent significantly reduced to 30.5 per cent for chilled beef and 27.5 per cent for frozen beef."

"On the back of increased exports of higher value cuts and chilled grainfed beef, we have already seen our exports of beef to Japan increase by 15 per cent to $1.9 billion in 2015, compared to $1.6 billion in 2014."

"Beef offal has also seen strong growth through the reduced tariffs within an Australia-specific quota, with exports worth over $204 million in 2015 -up 26 per cent from $162 million in 2014."

"This round of tarrif cuts is also good news for wine exports, with reductions in export tariffs and customs duties for both bottled and bulk wines. For example, the bottled wine export tariff has been reduced further from the first tariff cut level of 13.1 per cent now down to 9.4 per cent, and bulk wine (between 2 and 150 litres) exports tariffs cut from 13.6 per cent to 10.9 per cent."

"Reductions in tariff and custom duties for Australian wine have seen exports increase by 15 per cent in value in 2015, from $40.4 million in 2014 to $46.4 million."

"The benefits of tariff cuts under JAEPA are also flowing to a range of horticulture exports. For instance, exports of table grapes have grown from a zero base to be worth over $6.5 million in the 2015 season, thanks to negotiation of an import protocol in 2014, and also the tariff cut from 7.8 per cent prior to JAEPA to 5.9 per cent last year"

"Global demand for quality agrifood products continues to grow -for example, the real value of Asian agrifood demand is projected to double between 2007 and 2050," Minister Joyce said.

"The trade deals the Australian Government has secured in addition to the JAEPA -including with China and Korea, as well as the recently signed Trans-Pacific Partnership -combined with our world-class reputation as a reliable supplier of safe, clean and green agricultural produce, help put Australia's farmers in a strong position to take advantage of these exciting global opportunities."

Newsletter sign-up

The latest products and news delivered to your inbox