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Australian Cattle Council : Yearbook 2015
YEARBOOK2015 CATTLE COUNCIL OF AUSTRALIA 12 for our producers to export their premium produce to premium markets, at premium prices. We have been working to do just that, and have now concluded trade deals with three of our largest beef export markets: Japan, Korea and China, currently worth a combined total of almost $3.7 billion9 to our exporters. We exported 304,000 tonnes of beef and veal to Japan in 2014-15, worth more than $1.9 billion. Over the same period, we exported 157,000 tonnes of beef and veal to Korea, worth more than $1 billion; and 125,000 tonnes to China, worth $736 million. 10 Competition to supply these lucrative markets can be fierce – these deals provide a significant advantage over major competitors who do not have trade agreements in place, and closes the gap with those that do. These agreements will rapidly reduce or eliminate tariffs on beef and livestock, giving our exporters a stronger competitive edge. China-Australia Free Trade Agreement will see tariffs on Australian beef be eliminated over nine years – that's a great advantage for Australian producers in a market with huge potential. The Korea–Australia Free Trade Agreement will eliminate tariffs on beef and veal over 15 years. The Japan-Australia Economic Partnership Agreement will see tariffs on frozen Australian beef fall from 38.5 per cent to 19.5 per cent over 18 years, with chilled beef reduced from 38.5 per cent to 23.5 per cent over 15 years. This means tariffs for Australian beef to Japan are now less than the 38.5 per cent tariff faced by the United States, our biggest competitor. We have also delivered seven new market opportunities for livestock exports: Lebanon, Bahrain, Egypt, Iran, Cambodia, Thailand and China. The China FTA will also eliminate the 10 per cent tariff on live slaughter/feeder cattle within four years of its entry into force. The live slaughter/feeder cattle trade to Japan will also benefit from a 20 per cent reduction (from 38,250 yen to 30,600 yen for cattle 300kg or less, and 63,750 yen to 51,000 yen for cattle over 300kg) or less on live cattle tariffs under the Japan-Australia Economic Partnership Agreement. The Government will continue to work to secure access for our producers to the broadest and best range of export markets, and are currently negotiating trade agreements with other major trading partners, including India. Through the Agricultural Competitiveness White Paper we are investing $30.8 million to break down technical barriers to trade, and appointing five new agricultural counsellors in key markets. We are investing $200 million to strengthen our biosecurity system, which underpins Australia’s reputation as a reliable supplier of clean, green agricultural produce – one of our key advantages in international markets. We have also committed $12.4 million to modernise Australia’s food export traceability systems to further enhance our food safety credentials. We will continue to advocate for Australia’s beef and live cattle trade internationally, and to support productive relationships with key trading partners, such as Indonesia. The White Paper for Developing Northern Australia reaffirms the Government’s commitment to the Indonesia Australia Partnership on Food Security in the Red Meat and Cattle Sector, which will invest more than $12 million on three projects focussing on cattle breeding, meat processing and skills development programmes to be delivered over 2016 and 2017 to benefit both nations. Sensible policies, practical actions The Australian Government is committed to putting the right policy settings and practical measures in place to ensure the agriculture sector—including our beef cattle industry—reaches its full potential, and is well positioned to meet challenges and seize future opportunities. The Agricultural Competitiveness White Paper outlines our vision for a strong and prosperous agricultural sector, and the clear and practical actions we are taking to realise that vision, including: • a fairer go for farm businesses, with better regulation, healthier market competition, more competitive supply chains and a fairer tax system 9 ABARES Australian Beef Industry Fact Sheet 10 ABARES Australian Beef Industry Fact Sheet