10 November 2017

The Australian red meat and livestock industry has today (Friday 10 November) welcomed the Australian and Peruvian Government’s announcement of the Peru-Australia Free Trade Agreement (PAFTA) negotiations.

PAFTA will offer new red meat export opportunities for Australian beef, goatmeat and sheepmeat with all tariffs being eliminated within five years.

Red Meat Advisory Council (RMAC) Independent Chair Mr Don Mackay said that PAFTA provides an exciting new opportunity in the Latin American meat market.

“The forecast is for Peruvian beef consumption to triple by 2020 and sheepmeat consumption to increase by 20 percent by 2025,” said Mr Mackay.

“This, paired with the tariff reduction to zero on all red meat products via PAFTA, means that it is a new market with emerging potential.”

“This is a welcomed gain on the tariff elimination schedule that Peru was offering Australia in the yet to be ratified Trans Pacific Partnership.”

“We thank Minister for Trade, Tourism and Investment the Honourable Steven Ciobo MP and the team of officials for their work in expanding the range of global markets on offer for Australian red meat.”

PAFTA will see the current tariffs of 11 – 17 percent on beef being eliminated either on entry into force (EIF) of the agreement or within five years; the nine percent tariff on sheepmeat and goat meat being eliminated on EIF; tariff applicable to live animal exports and edible offals bound at zero percent and the elimination of tariffs for further processed meat products either on EIF or within five years.

Mr Mackay said that dialogue is already underway between Australian and Peruvian government authorities to establish the required import protocols for Australian red meat.

“To date there has been no red meat trade between Australia and Peru due to a lack of import protocols.”

“With the conclusion of PAFTA negotiations and anticipated establishment of protocols, our industry is ideally placed to assist Peru with its demand for imported red meat.”

Mr Mackay added “From an industry perspective, we will be in a position to respond to potential inquiries from the Peruvian retail and foodservice sectors.”

PAFTA is a well-regarded first step in securing closer economic relations with the Pacific Alliance group of countries that include Chile, Columbia, Mexico and Peru.

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