Trans–Pacific Partnership finalised

IT HAS been announced that the Trans-Pacific Partnership (TPP) has been settled, opening up additional export opportunities across the country.
Australian red meat and livestock sectors are expected to benefit with tariff levies slashed across the board.
Under the TPP, tariffs levied on Australian beef entering Japan will be further reduced with the Japan-Australia Economic Partnership Agreement (JAEPA).
The tariff on both frozen and chilled beef will fall to 9 per cent over 15 years. There will also be a global beef safeguard provision with the trading.
Processed red meat import tariffs applied by Japan, which currently range from 6-50 per cent, will be eliminated within 15 years.
In Canada, the current 35,000 tonne beef quota (0 per cent in-quota tariff) will remain, however, the above quota tariff of 26.5 per cent will be phased out. Additionally, the 2.5 per cent tariff on Australian sheep meat will be eliminated on entry into force (EIF).
For Australia’s trade to Mexico, the current 20-25 per cent beef tariff will be eliminated within 10 years.
In Peru, which represents a new market opportunity for Australian red meat, the 17 per cent beef tariff will be phased out and the 9 per cent sheep meat and goat meat tariffs will be eliminated on EIF.
Chairs of the Australian red meat and livestock industry peak councils said the arrangements would ensure Australia remained competitive in the global market.
“TPP members account for about 52 per cent of Australia’s beef, sheep meat and offal trade and the existing import tariffs applicable to Australia’s exports destined for TPP markets represent an annual tax on the supply chain of around $1 billion. The gradual removal of this cost burden will positively impact the profitability of Australian cattle and sheep producers, processors and exporters,” the peak council Chairs said
“The implementation of the TPP agreement will also help to ensure that the Australian red meat supply chain remains internationally competitive – with more seamless trade rules, reduced costs and less red tape making it easier for our sector to respond to the growing consumer demand across much of the Asia-Pacific region.”