Australia: Market access delivering gains
As an export-oriented, red meat-producing nation, free trade has been vitally important in developing a resilient industry. The majority of Australian red meat exports are now covered by FTAs, which have eliminated or significantly reduced tariffs on the vast majority of exports.
Beef
In the year-to-August 2024, 93% of Australian beef exports were shipped to countries with which Australia has an FTA. This figure stands in stark contrast to 2014, when 38% of exports were to countries with FTAs, or in 2004, when that figure was only 0.4%.
What’s more, many of these FTAs are now relatively ‘mature’ – they have been effect for several years, meaning that Australia is now well into commercially advantageous ‘phase-in’ periods. For example, the Australia-US FTA originally came into effect in 2005 and is now in year 19 of operation, meaning there are no longer any tariffs nor a volume-based quota on exports.
Lamb and mutton
Sheepmeat exports are less likely to be directed to a country which Australia has an FTA with. In the year-to-August, 61% of lamb and mutton exports went to markets with which Australia has an FTA – although many of the non-FTA destinations have either zero or low tariffs.
This is still a substantial improvement in market access; in 2014, the equivalent figure was 23%, and in 2004 the figure was 3%.
Most of the non-FTA sheepmeat exports go to Middle Eastern countries, especially countries in the Gulf Cooperation Council (GCG). Australia does not currently have an FTA with the GCG, and in 2024 so far, 19% of our lamb and mutton exports were shipped to GCG countries.
Looking forward
The Australian Government is continuing negotiations with the European Union and the United Arab Emirates and is seeking to further our bilateral partnership with India. All three could further improve Australia’s red meat market access and bring our sector even closer to comprehensive FTA coverage.
Outside of FTAs, non-tariff barriers (NTBs) continue to be an obstacle to trade in several markets. NTBs make it more difficult for exporters to take advantage of FTAs, and a reduction in the scope and intensity of these barriers would lead to a higher volume of more efficient trade.
Industry will continue to work in partnership with Government to alleviate a number of priority NTBs, with the aim of reducing the NTB impact by $1 billion/year by 2030.
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