What the TPP means for dairy

Oct 20, 2015

The 12 nations involved in negotiating the Trans Pacific Partnership (TPP) free trade agreement concluded negotiations in Atlanta on Tuesday 6 October 2015, delivering modest but important gains for the Australian dairy industry.


As the whole of value chain representative body, the Australian Dairy Industry Council (ADIC) acknowledged the conclusion of the agreement as a good result for Australian dairy farmers.

ADIC Chair, Noel Campbell said that the deal, in conjunction with the recently concluded China-Australia free trade agreement, would give farmers the confidence that if they are going to grow their businesses there are markets to match their growth.

“As an industry our future growth will be on the export market, as domestic growth has matured. The TPP provides improved access to markets such as Japan, where demand for our high quality, safe product is expected to increase in coming years,” Mr Campbell said.

“The industry is currently examining the agreement in its entirety to assess what the full extent of the benefits will be for Australian dairy. Early analysis indicates however that the TPP will enable more Australian cheese to be exported to Japan tariff-free. We’ve also got greater access for butter and skim milk powder than ever before.”

Mr Campbell said the industry appreciated the dedication of the Minister for Trade and Investment, the Hon. Andrew Robb MP and his team of negotiators, in continuing to seek trade agreements that benefit the Australian economy.

“On behalf of the Australian dairy industry I would like to extend my thanks to Minister Robb and the Australian negotiators for maintaining strong communication with industry throughout the TPP negotiations. They have done their utmost to balance the competing interest of industry and government across the 12 nations involved throughout a challenging process,” Mr Campbell said.

“The conclusion of the TPP continues a historic period of increased trade liberalisation over the past few years. The ADIC looks forward to reviewing the agreement in its entirety to fully quantify the benefits for dairy.”

Dairy remains hopeful of comprehensive TPP outcome

Aug 17, 2015

In the wake of the Maui Trans-Pacific Partnership (TPP) ministerial meetings, the Australian Dairy Industry Council (ADIC) has re-emphasised the importance of achieving a commercially meaningful outcome for all Australian dairy producers with regards to the Trans-Pacific Partnership Agreement (TPP).

While the ADIC is disappointed that a meaningful agreement has not been reached to date, it remains hopeful that in the near future a TPP which is in the best interests of the Australian dairy industry - and importantly the Australian community as a whole, will be completed.

The TPP is a multi-country Free Trade Agreement (FTA) currently under negotiation between Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, Japan, the United States, Vietnam, Mexico and Canada.

Sustained economic and population growth is driving an increase in dairy demand for the Asia-Pacific, but to take full advantage of this unprecedented opportunity, TPP must be ambitious, comprehensive and commercially meaningful.

ADIC Chair, Noel Campbell said there is still a lot of work to be done and key dairy market access outcomes across the TPP remain unresolved.

“Major dairy players must recognise the importance of trade liberalisation and honouring previously agreed positions to advancing negotiations in a positive manner,” Mr Campbell said.

“A commercially meaningful outcome for the TPP would provide benefits to all countries involved, their industries and consumers. Yet in order to achieve positive results across the board all TPP nations must demonstrate a willingness to negotiate in good faith.”

Mr Campbell acknowledged the efforts of the Minister for Trade, the Hon. Andrew Robb, his staff and the team of dedicated negotiators who have worked on its behalf.

“We will continue to promote the interests of Australian dairy as negotiations progress, and hope to see a comprehensive agreement reached in the near future.”

The ADIC remains are committed to working Government to reach a transformative outcome that provides opportunity for its farmers and processors.

To find out more about the ADIC’s work to liberalise access to key dairy export markets see here. 


ADIC reiterates need to implement China-Australia FTA in 2015

Jul 31, 2015

The Australian Dairy Industry Council (ADIC) has reiterated the importance of ratifying the China-Australia Free Trade Agreement (ChAFTA) within the 2015 calendar year, to ensure the benefits can reach Australian producers as quickly as possible.

Any delay in implementation of the deal beyond 31 December 2015 will cost Australian dairy between $20 million and $60 million in tariffs. This will make it more difficult for the Australian industry to compete and gain further market share.

ADIC Chair, Noel Campbell said while the council recognised that debate about the ChAFTA is part and parcel of a vibrant democracy, the Parliament needed to keep in mind the opportunities at stake for agriculture and food production.

“For Australian dairy to grow and invest in our future profitability, we will require markets that offer a way forward and match our progress,” Mr Campbell said.

“China’s population is set to reach 1.6 billion by 2050 offering enormous opportunity to sustainably grow beyond domestic markets. Our opportunity in China is underpinned by their demand for high quality, safe, value-added products such as infant formula.

Mr Campbell reiterated that parliamentary support for the agreement, that sees the removal of all tariffs on dairy imports over a decade, remains essential.

“With a long record of innovation and adaptation to changing conditions and markets, Australia’s dairy producers are in a strong position to meet the particular demands of boosting exports to China and growing our market share,” Mr Campbell explained.

The Australian dairy industry has had a long and close relationship with China and ChAFTA will allow our industries to further develop this long-term relationship to the mutual benefit of both countries.

Timing is of the essence. If farmers are to maximise benefits from the removal of tariffs then the deal must be implemented in this calendar year.”

The ADIC looks forward to working with both sides of Government to ensure the implementation of the ChAFTA by 31 December 2015. 

 


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