CPTPP Red Meat Industry benefits
01 March 2018
The Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) benefits will add significant value to the Australian red meat and livestock industry and complement the gains derived from the other free trade agreements Australia has concluded to date.
Under the CPTPP, 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 CPTPP member countries supplying beef to Japan will be similarly advantaged by these CPTPP 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, the CPTPP will complement the recently concluded Peru-Australia Free Trade Agreement, which will see the 11-17% tariffs on beef phased out and the 9% sheepmeat and goat meat tariffs eliminated on EIF under both agreements. Peru represents a new market opportunity for Australian red meat (pending the development of protocol arrangements).
Brunei, Chile, Malaysia, New Zealand, Singapore and Vietnam
For these remaining CPTPP members, existing bilateral and / or regional agreements have, or are already delivering, market access improvements.
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