Trade reforms a positive kick start for 2016
Posted on Saturday, January 23, 2016 - Category: In the News
Over the course of 2015, Australian Dairy Farmers (ADF), together with state members and industry partners has worked collaboratively with government to broker new trade deals which increase access to key Asian markets hungry for safe, clean and sustainable Australian dairy produce.
ADF welcomed the China-Australia Free Trade Agreement (FTA) which entered into force on 20 December 2015, followed quickly by a second round of tariff
reductions on 1 January 2016.
Also on New Year’s Day, the Korea-Australia FTA progressed to its third year of benefits for dairy exporters, meaning further tariff reductions and increased quotas for a range of Australian dairy exports.
Similarly, the Malaysia-Australia FTA moved into its fourth year of implementation, translating to further increased liquid milk tariff rate quotas. The Thai-Australia and US-Australia FTA’s also celebrated a milestone in passing the 10 year point, and provided improved duty free quotas for Australian dairy.
Further to this, the finalisation of the Trans-Pacific Partnership negotiations in late 2015, plus the late December announcement of an agreement to abolish government subsidies on agricultural exports through the World Trade Organisation.
The Australian dairy industry still faces challenges in its export focused markets, especially with regard to technical barriers to trade which translate
to higher production costs, reduced product returns and restricted export demands all combine to lower milk returns for farmers.
With these challenges in mind, ADF is celebrating the progress made in trade reform to the long-term benefit of our industry. This progress boosts the
industry’s competitive position in the global market and contributes to building confidence to invest in a strong future for Australian dairy.
For more information on ADF’s Markets Trade and Value Chain priorities, click here.