Second round of tariff cuts under JAEPA to benefit Australian agriculture industry

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Image credit: FreeDigitalPhotos.net user: adamr

Minister for Agriculture Barnaby Joyce has encouraged Australian exporters to take full advantage of the second round of tariff cuts under the Japan-Australia Economic Partnership Agreement (JAEPA), which came into effect on Wednesday.

Image credit: FreeDigitalPhotos.net user:  adamr
Image credit: FreeDigitalPhotos.net
user: adamr

“This is the second tariff cut under JAEPA in quick succession. The work of the Australian Government is making a real, tangible difference to producers—we are bringing better returns to the farm gate and helping restore dignity to the lives of farmers who have been doing it tough,” Minister Joyce said in a press release.

“JAEPA has already eliminated tariffs for several major seafood exports to Japan including abalone, rock lobster, prawns and oysters. It’s great news for our seafood industries in this valuable market.”

He said the Australian agriculture industry was already seeing some real benefits of JAEPA across a range of sectors.

Adertisement

“Horticultural exports, including asparagus, mangoes and macadamias now face zero tariffs under JAEPA. Importantly, tariffs on Australia’s largest horticultural export to Japan, citrus, are now being reduced — further improving the competitiveness of Australian citrus in what is already the industry’s largest export market.”

Minister Joyce stressed that Japan imported over $1 billion worth of wine in 2014 and encouraged Australian wine exporters to take advantage of phased tariff reductions for wines, bottled and bulk, to result in tariff elimination within 7-10 years.

“There has also been great uptake by Australian exporters of the new Australia-only quotas for Australian product, with approximately 50% of quota taken up in the first year (15 January to 31 March 2015) including all of the quota for bovine offal and honey. Australian exporters have already shipped quota products valued at over $10 million since 15 January 2015. For example, this includes 2833 tonnes of bovine offal, 452 tonnes of preserved and prepared meats, 56 tonnes of pork and 13 tonnes of honey exported to Japan under these quotas—a massive take-up,” he said.

“Beef tariffs of 38.5% are now significantly reduced with tariffs falling to 31.5% for chilled beef and 28.5% for frozen beef on 1 April 2015. This means tariff savings to industry worth $27 million alone on beef exports to Japan since entry into force. Here in Australia, I’m pleased to see more good news for the beef industry, with predictions this week that the price of live cattle will reach $4 a kilogram.”

The Minister also emphasised the importance of Japan as a trading partner and how beneficial this two-way relationship is to both countries.

“In 2014 Australia’s total agricultural exports to Japan were valued at over $4.1 billion and the value of our beef trade alone was worth $1.6 billion. JAEPA is proof the Government remains committed to providing Australian agriculture with increased trade opportunities in our current markets, in addition to our market access efforts in new and emerging markets,” he said.

“JAEPA has enhanced what was an already important trade relationship between Japan and Australia—and we will continue to work hard on these positive outcomes for exporters.”