Market access

The importance of market access

As a major exporting industry, changes in access to overseas markets affect the profitability of both individual livestock producers and meat processors. Approximately three quarters of Australian red meat is now consumed in overseas markets. Access to a wide array of global markets allows Australian exporters to maximise the value of each carcase and reduce the risk of being overly reliant on any one buyer. Dynamic international market conditions require an ongoing effort to defend access and, where possible, secure improvements to export conditions via trade reform.

MLA's role in market access

MLA’s market access program, co-funded by producer levies and processor contributions, works alongside industry and government to defend and maintain existing favourable access conditions, position Australia positively in trade negotiations and assist with the alleviation of non-tariff (technical) trade barriers via in-market representation and research.

MLA’s contribution is led by staff in Sydney, and via our overseas offices in Washington, Brussels, London, Dubai, Beijing, Tokyo, Seoul, Singapore and Jakarta, coupled with our network of representatives in South East Asia.

Broadly speaking, MLA has a trade advocacy role.

The role of government

Defending market access and securing trade reform are commonly undertaken at a government-to-government level. In so doing, the Australian Government implements an integrated trade policy program with the goal of creating new and more open export markets. This is achieved through three key trade reform avenues:

• Multilateral trade reform involves discussions with many countries via the World Trade Organization (WTO)
• Regional trade reform involves numerous countries within a specified region
• Bilateral trade reform involves two countries and is advanced via free trade agreements and individual country/sector negotiations on market access

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Free trade reform

Free trade agreements (FTAs) or closer economic partnerships promote stronger trade and commercial ties between participating countries and open-up opportunities for Australian exporters and investors to expand their business into key markets. FTAs can speed up trade liberalisation by delivering gains faster than multilateral or regional processes.

The Australian red meat and livestock industry has been a major beneficiary of FTAs completed to date. This has involved the reduction or elimination of tariffs as well as improvements to other, previously trade restrictive, measures. For example, it is estimated that the benefits of Australia’s the three North Asian FTAs – Korea (KAFTA), Japan (JAEPA) and China (ChAFTA) – will result in a combined $20 billion in extra value for the Australian industry over the next twenty years.

Furthermore, Australia’s recent FTA with Indonesia (IA-CEPA) will eliminate remaining tariffs imposed on Australian livestock and meat exports, while the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP) will further liberalise red meat access into Japan and remove barriers in other markets.