TPP delivers additional export opportunities for Australian red meat and livestock

The Australian red meat and livestock sectors will benefit from improved market access arrangements following the conclusion of the Trans-Pacific Partnership (TPP) negotiations announced by Trade Ministers* in Atlanta on 5 October 2015.

Under the TPP, the tariffs levied on Australian beef entering Japan will be further reduced from those negotiated under the Japan-Australia Economic Partnership Agreement (JAEPA). The tariff on both frozen and chilled beef will fall to 9% over 15 years - as opposed to the end point of 19.5% for frozen beef and 23.5% for chilled beef secured under the JAEPA. All TPP member countries supplying beef to Japan will be similarly advantaged by these TPP tariff cuts. A global beef safeguard provision will apply to this trade.

In addition, processed red meat import tariffs applied by Japan, which currently range from 6-50%, will be eliminated within 15 years; the majority of offal tariffs eliminated within 10-15 years; and the tariffs applied to live cattle imports will also be eliminated.

In Canada, the current 35,000 tonne beef quota (0% in-quota tariff) will remain, however, the above quota tariff of 26.5% will be phased out.  Additionally, the 2.5% tariff on Australian sheepmeat will be eliminated on entry into force (EIF).

For Australia’s trade to Mexico, the current 20-25% beef tariff will be eliminated within 10 years; the 10% sheepmeat and goat meat tariffs will be eliminated within 8 years; the majority of offal tariffs will be eliminated on EIF; and the 10-15% tariffs on live animals will also be eliminated on EIF. 

In Peru, which represents a new market opportunity for Australian red meat, the 17% beef tariff will be phased out and the 9% sheepmeat and goat meat tariffs will be eliminated on EIF.

For the remaining TPP members, existing bilateral agreements have, or are already delivering market access improvements.

“These TPP benefits are most welcome and importantly complement the gains already secured for the Australian red meat and livestock industry from the recent suite of FTAs Australia has previously concluded,” the Chairs of the Australian red meat and livestock industry peak councils said.

“TPP members account for about 52% of Australia’s beef, sheepmeat and offal trade and the existing import tariffs applicable to Australia’s exports destined for TPP markets represent an annual tax on the supply chain of around $1 billion. The gradual removal of this cost burden will positively impact the profitability of Australian cattle and sheep producers, processors and exporters,” the peak council Chairs said.

“The implementation of the TPP agreement will also help to ensure that the Australian red meat supply chain remains internationally competitive - with more seamless trade rules, reduced costs and less red tape making it easier for our sector to respond to the growing consumer demand across much of the Asia-Pacific region.”

The Australian red meat and livestock industry extends its thanks to the Minister for Trade and Investment and his negotiating team for the tireless effort in what has been a difficult and protracted series of negotiations.

“The advantageous outcomes achieved will help to favourably position the Australian red meat and livestock sector for years to come - while the establishment of a reform framework will pave the way for future trade transformation should the TPP membership base widen,” the industry said.

* The Trade Ministers represent the 12 TPP member countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States and Vietnam