Australia’s red meat supply chain policy leadership group, the Red Meat Advisory Council, has welcomed the introduction of the Comprehensive and Progressive Trans Pacific Partnership (CPTPP) into the Senate this week (15 October 2018).

Independent Chair of RMAC, Mr Don Mackay, said that historic agreements like the CPTPP would future proof Australia’s 82,500 red meat businesses and work towards industry’s collective goal of unlocking 3 billion in growth through trade and market access diversification by 2030.[1]

“We are an industry that exports up to seventy percent of our product and the CPTPP will offer key market access gains for established and emerging Aussie red meat markets to Japan, Canada, Mexico and Peru.”

“The CPTPP agreement will also add up to $1 billion dollars in cost savings for our industry in trade and export regulation streamlining.”

“It is a significant and exciting agreement for Australia’s 82,500 red meat businesses and the 438,000 Australian jobs our industry supports, many of whom are completely export reliant.”

“We call on the Senate and all sides of Australian politics to support this crucial trade deal for Australia red meat businesses, Australian red meat jobs and to strengthen and grow our key international trade partnerships.”

ENDS

Media Contact: Anna Campbell, anna@rmac.com.au, 0448 692 245

KEY GAINS BY MARKET

Japan

  • 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.

Canada

  • 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).

Mexico

  • 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.

Peru

  • In Peru, the CPTPP will complement the 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.

[1] Source: Meat Industry Strategic Plan 2020