Dairy exports no longer copping tariff in China

Dairy-crisisAustralian farmers exporting overseas will be better off as tariffs are slashed or abolished under the Trans Pacific Partnership and the China-Australia Free Trade Agreement (ChAFTA).

Tariffs on farm produce going into China were largely eliminated on January 1.

“Key exports including wine, most fruit and vegetables, seafood and some dairy will no longer cop a tariff in China, which means our produce will be more affordable for Chinese consumers.”

ChAFTA has contributed to significant growth in exports over the last 12 months; beef exports increased 34.5 per cent to $1 billion, wine exports increased 65.1 per cent to
$982.7 million, dairy exports increased 38 per cent to $818.8 million, and navel orange exports increased 57.5 per cent to $87.2 million.

The Comprehensive and Progressive Agreement for Trans Pacific Partnership (CPTPP) entered into force on 30 December 2018.

“Just some of the benefits are our farmers will sell more dairy into Canada through a new quota, more rice into Japan and no longer face tariffs on sheepmeat or pork into Mexico,” Minister for Agriculture David Littleproud said.

“We’re giving our farmers more options overseas so they can sell where they choose – not just to the supermarkets here in Australia.

“Australia exported more than $12.5 billion of agricultural produce to CPTPP countries last financial year, representing almost a quarter of Australia’s total ag exports.”

With the CPTPP entering into force on 30 December 2018, exporters will receive two tariff reductions within three days.

The first on 30 December—reductions associated with the entry into force of the agreement—followed by the annual tariff reduction rate on 1 January 2019 in those countries which ratified the CPTPP (Japan’s second tariff cut will take effect on 1 April 2019).

Australia’s ratification of the CPTPP meant Australian exporters benefitted from immediate tariff cuts on entry into force of the CPTPP on 30 December 2018 for Canada, Japan, Mexico, New Zealand and Singapore, and further tariff cuts into Canada, Mexico, New Zealand and Singapore on 1 January 2019 (Japan’s second tariff cut will take effect on 1 April 2019).

Australian exporters will benefit from two tariff cuts for Vietnam on 14 January 2019 (when the CPTPP enters into force for Vietnam).

Since January 2016, the Australian Government has delivered 92 key market access gains or restorations and 87 key market access improvements or actions to maintain market access for Australian agriculture.

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