Trans-Pacific Partnership signed

Feb 04, 2016

The official signing of the Trans Pacific Partnership (TPP) in Auckland, on 4 February has been welcomed by the Australian Dairy Industry Council (ADIC). The signing follows an agreement reached between the twelve negotiating countries on 6 October 2015.

The TPP made some gains made for the Australian dairy industry in improving opportunities in key export markets such as Japan.

The conclusion of the TPP continues a historic period of increased trade liberalisation over the past few years.

Following the signing ceremony, Australia must now go through a domestic ratification process. This means that before any binding treaty action is taken, the TPP text and a National Interest Analysis will be tabled in Parliament for 20 joint sitting days.

The Joint Standing Committee on Treaties (JSCOT) will conduct an inquiry into the TPP and report back to Parliament on 'matters arising from the TPP treaty and related National Interest Analysis and proposed treaty actions presented or deemed to be presented to the Parliament.'

The ADIC will provide a submission to the inquiry.


 

Trade reforms a positive kick start for 2016

Jan 23, 2016

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.

Australian dairy industry welcomes ChAFTA entry into force

Dec 20, 2015

The Australian Dairy Industry Council (ADIC) has welcomed the China-Australia Free Trade Agreement (ChAFTA) entry into force on 20 December 2015.

ADIC Chair, Simone Jolliffe said the dairy industry was extremely pleased that the historic agreement has been ratified before the end of the 2015 calendar year.

“The entire dairy value chain, led by the ADIC, has lobbied strongly for the implementation of ChAFTA and we are pleased to see its entry into force,” Mrs Jolliffe said.

“On 20 December, Australian dairy exporters experiences the first year’s tranche of tariff reductions. This will be followed by a second round of tariff cuts on 1 January 2016.”

“In the long term this will mean more jobs across the Australian dairy industry both on farm and in processing plants. It will provide our industry with the confidence it needs to invest for a strong future.”

The ADIC thanked the Minister for Trade and Investment, Andrew Robb, and his team of negotiators as well as the Australian government, industry and the broader dairy community for its ongoing support and for ensuring the deal will be ratified in the 2015 calendar year.


 

 

Stronger competition laws remain on agenda

Oct 30, 2015

Australian Dairy Farmers (ADF) is calling upon the Coalition Government to adopt stronger misuse of market power laws to foster a more competitive business environment.

While some business groups have suggested that stronger laws about the misuse of market power may have negative impacts on competition and innovation, these claims don’t withstand scrutiny.

ADF President, Noel Campbell said concerns that the introduction of an effects test could put consumers at risk were unfounded.
“These changes are about protecting consumers and competition from actions that substantially lessen competition in a market. These reforms are in consumers’ interests,’ said Mr Campbell.

“The Harper Review made it clear, the law as it stand is inadequate. The Government must not let self-interested businesses and organisations with excessive market share further limit competition to the detriment of consumers, farmers and the Government.”

ADF strongly supports the Harper Review’s recommendations for any updated competition and consumer law to include an effects test. ADF is advocating for certainty that the legal process is able to provide integrity and transparency regarding the impact of retailer actions on suppliers.

Almost all OECD countries already have an ‘effects test’ within their legislative schemes and there should be no trouble in drafting an appropriate test that protects the integrity of Australian market. ADF is hopeful that this will prevent damaging practices, including predatory pricing in future.

Addressing the misuse of market power is crucial in determining the Australian dairy industry’s future profitability and sustainability. Farmers need every opportunity to improve their negotiating power for profitability and returns at the farm-gate to be achieved.

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