Agricultural exporters have welcomed tariff cuts as new free trade arrangements take effect this week under the revived Trans-Pacific Partnership Agreement (TPP-11).
Tariff reductions and significant new market access arrangements for a large number of agricultural exports will come into force this week, which will eventually eliminate 98% of tariffs on exports throughout the Pacific region.
North Queensland sugarcane growers have welcomed tariff cuts under the Trans-Pacific Partnership Agreement. Businesses and farmers are set to benefit from two tariff cuts, with one cut starting on 30th December, followed by a second on 1st January. In addition to the TPP-11 reductions, a fifth round of tariff cuts under the China-Australia Free Trade Agreement (ChAFTA) started on 1st January which will eliminate more than 5000 tariffs. A sixth round of tariff cuts through the Korea-Australia Free Trade Agreement also commenced on 1st January.
TPP-11 market access outcomes build on existing levels of market access Australia has with its FTA partners, namely Japan, Chile, New Zealand, Malaysia, Singapore, Peru, Brunei and Vietnam. Federal Government analysis of the trade agreement shows potential benefits of up to $15.6 billion to the national economy by 2030.
Pork, beef and dairy exporters are also among some of the big winners. The TPP-11 will provide new access to Canada for Australian grains, sugar and beef exporters, and will open up the growing Mexican market for pork, wheat, sugar, barley and horticulture producers.
It would also improve market access into Japan for beef, wheat, barley and dairy exporters.
New textile rules of origin should encourage greater demand for Australian wool under the agreement, which eliminated all remaining tariffs on Australian raw wool from 30th December.
Wine, horticulture and seafood exporters can all look forward to improved market access.