Tariff cuts for farmers start the new year

0

Australia’s agricultural exports are expected to hit a record high of $ 61 billion. – AAP image

Australian farmers will be able to better tap new markets thanks to the world’s largest free trade agreement that comes into force on January 1.

The 15-nation FTA – known as the Regional Comprehensive Economic Partnership – covers 30 percent of the world’s population and 29 percent of its GDP.

It will provide a single set of rules and lower rates for signatories.

A series of lower tariffs and better market access will also be rolled out as part of the next phase of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership – commonly known as CPTPP – which will enter into force on the same day.

Full implementation of the CPTPP will eliminate almost all tariffs between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

The Mexican tax on barley will be removed and tariffs on certain beef products will be halved.

The threshold for tariff rates on cheese entering Canada and Mexico will also be raised.

Agriculture Minister David Littleproud said the CPTPP will benefit more than $ 5.5 billion in Australian agricultural exports.

“Free trade agreements will continue to drive investment and demand for premium products as we expand our export trade and recover from the global COVID-19 pandemic,” he said. declared.

“They give new impetus to our farmers who propel the agricultural sector to new production records expected in 2021-2022. “

Other changes will also be introduced under the Indonesian and South Korean FTAs.

Tariff rate quotas in Indonesia will increase for live cattle, citrus fruits and feed grains, while South Korea will lower tariffs on beef to 16% and lamb to 2.25% in ninth round of cuts as part of the agreement.

Tariff quotas for rice, dairy products, sugar and sorghum will also be increased in Peru from January 1.

Australian agricultural exports are expected to reach a record high of $ 61 billion, the minister said.

Share.

Comments are closed.