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Australian Cattle Council : Yearbook 2015
YEARBOOK2015 CATTLE COUNCIL OF AUSTRALIA 28 China-Australia FTA (ChAFTA) Upon entry into force (expected late 2015), ChAFTA will initiate significant improvements to current access arrangements for the Australian grassfed beef sector. ChAFTA negotiations concluded on 17 November 2014 and delivered on CCA priorities via securing future elimination of all beef import tariffs. Under the Agreement, the tariffs currently levied on Australian beef of 12-25% will be eliminated within 9 years of entry into force; the tariffs on offals of 12-25% will be eliminated over 4-10 years; and the 5-8.5% tariffs on cattle hides will also be eliminated. In combination, the above trifecta of FTAs will potentially deliver an additional $12 billion in beef export value over the next 20 years. Beef was one of only a handful of agricultural sectors to benefit from all three FTAs – an endorsement of the long term approach CCA has adopted in positioning grassfed beef for future market access outcomes. Trans-Pacific Partnership (TPP) CCA’s trade reform agenda also included input into the TPP negotiations – involving 12 countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States and Vietnam. At the time of writing, the TPP agreement has just been secured – with negotiations concluding in Atlanta on 5 October. Upon entry into force, the TPP will deliver even further tariff reductions (down to 9% ie beyond those achieved under JAEPA) for beef exported to Japan and enhanced export opportunities via the elimination of beef tariffs in Canada, Mexico and Peru. CCA has supported the successful conclusion of the TPP agreement since the beginning of the negotiations. As a member of the Five Nations Beef Alliance (FNBA), Cattle Council with support from beef producers in Canada, Mexico, New Zealand and the United States, urged all participants involved within the TPP negotiations to action a trade liberalising agreement as soon as possible. This has paid dividends with the collective voice of beef producers from around the world helping to secure a level playing field via fair and transparent beef access arrangements. The pursuit of improved trade facilitation with Indonesia was also high on CCA’s agenda. This took the form of interaction with the Indonesia-Australia partnership on food security in the red meat & cattle sector, to which the Australian Government has recently committed $60 million in funding over the next 10 years. The aim is to encourage closer dialogue at government to government, business to business, and government to business levels - and thereby improve demand signals and supply consistency along the supply chain. Initial effort was also directed at securing closer ties with the European Union (EU) – with CCA making representations to Government on the value of an enhanced bilateral beef trade partnership. This complemented the work of ensuring Australia continued to have access, on a non-discriminatory basis, to the EU high quality grainfed beef quota. Of importance during 2015 was the appointment by the Australian Meat Processor Corporation (AMPC) of a Trade Director, Technical Market Access to assist industry tackle the plethora of non-tariff barriers impacting Australia’s red meat trade. The initial focus of the Trade Director is on China and the Middle East – two regions identified in industry’s previous research has having impediments which generate significant trade distorting impacts. CCA in conjunction with MLA and other industry partners will continue to work closely on this initiative in order to seek alleviation of these trade imposts. JED MATZ CEO, CCA CCA has supported the successful conclusion of the TPP agreement since the beginning of the negotiations.