Barker farmers to reap benefits from Pacific trade deal

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will mean big benefits for farmers in Barker, says Member for Barker Tony Pasin.

Beef, sheep, dairy, wine, horticulture, seafood, cereal and grain commodities are all set to see better prices flow to the farm gate by making these products more competitive in CPTPP countries.

“Australia already exports $12.3 billion of agricultural products to CPTPP countries, and this deal will speed up growth in the Pacific region,” Mr Pasin said.

The agreement will deliver 18 new free trade agreements between the CPTPP parties. For Australia that means new trade agreements with Canada and Mexico and greater market access to Japan, Chile, Singapore, Malaysia, Vietnam and Brunei.

The CPTPP is the latest trade agreement the Coalition Government has secured, following the bilateral deals with China, Japan, South Korea and Chile which is seeing the Australian agricultural sector grow.

Australia took a leadership role in the negotiations to deliver the CPTPP because it will drive Australian exports and create new Australian jobs.

“The CPTPP is a multi-billion-dollar win for jobs, businesses, farmers and consumers in Barker who are already seeing the benefits of other recent trade agreements,” said Mr Pasin.

The CPTPP will eliminate more than 98 percent of tariffs in a trade zone with a combined GDP of AUD 13.7 trillion.

Benefits of the CPTPP to Barker farmers include;

Beef is Australia’s largest global agricultural export, worth $7.1 billion in 2016/17. The CPTPP will see:

• Reduced tariffs into Japan within 15 years and the elimination of tariffs on offal over 10 to 15 years;
• Elimination of Canadian tariffs within 10 years, which are currently 26.5%;
• Elimination of Peruvian tariffs within 10 years, which are currently 17%;
• Elimination of Mexican tariffs on beef carcasses and cuts within 10 years, which are currently up to 25%) and immediate elimination of other offal tariffs.

Sheep Meat exports are valued at $425.2 million in CPTPP markets. The CPTPP will see the immediate elimination of tariffs on sheep meat exports to all CPTPP countries, with the exception of Mexico which will eliminate tariffs within 8 years;

Wool exported to CPTPP countries is worth $36.5 million to the Australian economy. The CPTPP will see greater opportunities for Australian wool producers with the complete elimination of tariffs on raw wool exports to CPTPP countries.

Pork exports to CPTPP countries are worth $83.7 million to the Australian economy. Through the CPTPP, producers will benefit from:

• 90 percent reduction in specific tariffs applied to pork cuts and carcasses within 10 years;
• Elimination of Malaysian tariffs within 15 years;
• Immediate elimination of Mexico’s 20% tariff.

Cereal and Grain exports to CPTPP countries contributes $1.6 billion to our economy. The CPTPP will deliver:

• Improved market access in Japan for wheat, barley and malt;
• Elimination of Mexican tariffs on wheat within 10 years (currently at 67 percent);
• Elimination of Mexican tariffs on barley within 5 years (currently at 115 percent);
• Elimination within 5 years of Peruvian tariffs on cereals and grains;
• Immediate elimination of Canadian tariffs on cereals and grains.

Dairy exports are popular in CPTPP countries with more than $1 billion exported last year. The CPTPP will see:

• Elimination of tariffs on certain cheese products in Japan, with tariff reductions and new quota allocations for remaining cheeses, with new quotas and tariff reductions for other dairy products.
• New access to Mexico for butter, cheese, milk powders and the elimination of Mexican tariffs on yoghurt.
• Preferential access to the Canadian market with new quotas and the immediate elimination of tariffs on milk concentrates.

Wine exports to CPTPP countries are valued at $443.2 million. The CPTPP will benefit our wine industry through the:

• Immediate elimination of Canadian tariffs on wine;
• Elimination of Malaysian tariffs within 15 years, which are currently subject to tariffs ranging from 7 to 23 Malaysian Ringgit per litre;
• Elimination of Vietnamese tariffs within 11 years, which are currently subject to tariffs of up to 59%;
• Elimination of Mexican tariffs for high quality wines, currently subject to 20%, with all other wine tariffs being reduced within 10 years;
• Immediate elimination of Peru’s 9% tariffs on table wine and elimination of all other wine tariffs within 5 years.

Horticulture exports to CPTPP countries are valued at $830.8 million. The CPTPP will benefit our horticultural industries through:

• Better market access for Australian oranges and an elimination of tariffs on fruit juices within 10 years in Japan;
• Immediate elimination of Canadian tariffs on horticultural products;
• Immediate elimination on most of Peru’s horticultural tariffs, which are currently up to 17%;
• Immediate elimination on most of Mexico’s horticultural tariffs, with complete elimination within 15 years. 

Seafood exports to CPTPP countries are valued at $1.1 billion. The CPTPP will benefit our seafood industry through the:

• Elimination of all Japanese seafood tariffs within 15 years;
• Immediate elimination of all Vietnamese seafood tariffs;
• Elimination of Mexico’s seafood tariffs within 15 years, with the majority eliminated immediately.

Trade Ministers in participating countries are expected to sign the Comprehensive and Progressive Agreement for Tans-Pacific Partnership on March 8 in Chile.

Contact: 8724 7730