SWIFT ratification of the Trans Pacific Partnership will help create new export opportunities for Australian agriculture and further build on the sector’s contribution to the national economy, the National Farmers’ Federation (NFF) says.
After the TPP’s signing, NFF president Brent Finlay said the trade deal had the potential to create longer term benefits for Australian farmers in countries where no agreements were in place like Canada, Mexico and Peru.
Mr Finlay said NFF recognised the TPP signing achievement but stressed it was now “critical the next step is taken swiftly” and the agreement was ratified by each country, including Australia.
“What we need is for the clear benefits of this agreement and its potential to bolster Australia’s export opportunities and the broader economy to be recognised and for the ratification process not to be politicised and stalled,” he said.
“The signing of the TPP is a game changing move for Australian agriculture and a comprehensive and liberalising agreement for the Australian community.
“We now urge those involved to ensure the agreement is ratified so that our industry and the broader economy can reap the benefits of increased global market opportunities.”
VFF Vice President David Jochinke said the TPP would see unprecedented export opportunities for rural producers in Victoria and also urged the federal government to move quickly in ratifying the deal.
“The TPP is a monumental agreement for the agriculture sector, but the quicker it is ratified the quicker we can unlock the benefits of international trade,” he said.
Australian Sugar Industry Alliance Chair John Pratt said the TPP would improve access for Australian agricultural produce into important regional markets, particularly the US and Japan.
Mr Pratt said the gains for Australian sugar under the TPP included the first increase in Australian sugar’s access to the US market for two decades.
He said the increase of 65,000 tonnes to a total of 152,000 tonnes was worth around $13 million extra per year to Australia.
“The negotiations also achieved the removal of the in-quota tariff, worth around $3m and the potential for additional annual allocation of access based on US needs,” he said.
Projections for sales of high pol sugar to Japanese refineries are around 600,000t for this financial year, more than double the previous year’s sales and the TPP will deliver a reduction of costs for sugar going into that market of $25 per tonne, the Alliance said.
“There is no doubt this deal translates to dollars for the Australian industry and it is very much a step in the right direction as far as trade liberalisation goes,” Mr Pratt said.
“We look forward to the speedy ratification of the Agreement in the Australian Parliament.”
The Australian Dairy Industry Council Chair Simone Jolliffe said the TPP improved the Australian dairy industry’s opportunities in key export markets like Japan.
Key TPP outcomes
Beef: Japan’s tariff on both chilled and frozen beef imports will be reduced from 38.5pc to 9pc over 15 years and Canada (currently 25.6pc), Mexico (25pc) and Peru (17pc) will eliminate all tariffs on beef over 10 years.
Lamb: Tariffs on exports to Mexico - a $22m market in 2014 - will be eliminated within eight years. Any tariffs on sheepmeat in other TPP markets will be eliminated on entry into force.
Grains and cereals: Tariffs on wheat (currently 67pc) and barley (115pc) into Mexico are being completely eliminated over 5–10 years.
Dairy: Tariffs reduced or eliminated on yoghurt into Mexico, and on a range of dairy products into the US and Canada. For Japan, TPP eliminates or reduces a range of tariffs (over 10-15 years), and with new quota allocations for cheese, butter, skim milk powder, ice cream, condensed milk, yoghurt and more, there are good prospects for our dairy exports to grow.
Wine: Existing high tariffs in Canada, Malaysia, Vietnam, Mexico and Peru to be eliminated either on entry into force or shortly after. Exports of wine to these countries are significant already, with Canada taking $174m worth in 2014. In total we export almost half our $1.9b worth of wine exports to TPP countries.