In a significant win for the Australian red meat industry, an update has been announced last week that the Trans-Pacific Partnership (TPP) for the 11 parties will be signed in Chile in March 2018.
The renamed Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) was designed to promote regional economic integration and contribute to the economic growth prospects of its member countries, and create new opportunities for workers, families, farmers, businesses and consumers. This update will lock in market access gains that lower import costs, reduce red tape facilitate supply chain networks and provide greater certainty for businesses. These will be achieved by securing either a multilateral reduction or the elimination of tariffs on beef and lamb products into countries such as Japan, Mexico, Canada, Peru.
Key gains by market include:
Japan: In 15 years, frozen and chilled beef tariffs will be reduced to 9%, (building on the existing JAEPA) along with tariff elimination on offal and processed red meat.
Canada: No changes to the current beef quota 0% tariff, however the out of quota tariff of 26.5% will be phased out and the sheep meat tariff will be eliminated on entry into force (EIF).
Mexico: Within 10 years, the current beef tariff 20%-25% will be eliminated, along with the current 10% sheep meat and goat meat tariffs, and similarly for offal on entry into force.
Peru: Peru represents a new market opportunity for Australia (pending protocol development arrangements) and this CPTPP will complement the recent PAFTA, seeing beef tariffs of up to 17% phased out, along with 9% sheep and goat meat tariffs on entry into force.
Other countries in the CPTPP signatory include Brunei, Chile, Malaysia, New Zealand, Singapore and Vietnam.
If you would like to feedback your thoughts on any of the above, please contact our Industry Development and Government Relations, Stella Lee at email@example.com.
The next global markets open forum will be held at Beef Australia 2018 which will give you an opportunity to hear about other markets.