Recent free trade agreements with Japan, Korea and China are expected to deliver an extra $20 billion dollars back to the Australian red meat sector when fully in effect, according to Meat & Livestock Australia’s global manager for trade and market access Andrew McCallum.
The Trans-Pacific Partnership signed in December was also a big win for Australian producers.
“We will get a beef tariff eventually of 9pc and unless the United States rejoins the TPP or does a separate deal with Japan they will be stuck on 38.5pc so it is a clear advantage over one of our major competitors in one of our key markets ," he said.
But Mr McCallum, who was the guest speaker at the recent Livestock SA southern region meeting in Robe, says there are plenty more "roadblocks" to be removed.
He estimates there is $1.6b in extra value still to be captured in yet to be signed free trade agreements and about $2.5b in non-tariff barriers across the world, such as compliance and certification.
"Chafta (China-Australia FTA) has eliminated tariffs but the non-tariff barriers are preventing us taking advantage of the deal with a lot of Australian export abattoirs not having licences with China and restrictions on the amount of chilled product sent," he said.
He also warned Australia was likely to be “collateral damage” in the US-China trade war and messy Brexit divorce.
MLA's priority was defending Australia’s European Union grainfed beef quota - one of our highest value markets.
“The US are putting a lot of pressure on the EU to carve out the majority of the 45,000 tonnes just for US use and we supply up to 75 pc of the quota to them at the moment so if the US gets the majority share we are going to go backwards," he said.
And although the volumes of beef and sheepmeat shipped to the EU were only small the proposal to split the quotas could "pigeon hole" Australia into supplying a certain amount to the EU and a certain amount to the United Kingdom.
Also on MLA's agenda is getting sheepmeat access into India and completing a FTA with the Gulf countries.
Mr McCallum reminded producers that trade was “two-way”, with some high end Wagyu beef allowed into Australia from Japan in recent months and other major beef producing countries eager to export product here.
“If it happens it will be up to consumers to decide (what they buy) and provenance will be key," he said.
