The landmark free trade agreement that will see all tariffs on Australian beef shipped to the United Kingdom eliminated after ten years should be in place by the end of the year.
Australia's trade minister Don Farrell said the UK FTA was now progressing through the Joint Standing Committee on Treaties with a report date set for November 18, which would allow time for any legislative changes to be in place before Christmas.
The deal, signed last December, will see a tariff-free quota of 35,000 tonnes at entry into force and that will expand to 110,000t in year 10.
Beef industry experts have described it as the best deal Australia has struck anywhere in the world for the cattle industry.
Meat & Livestock Australia's Michael Crowley said Europe and the UK presented a big opportunity for Australian beef.
"When the UK split from Europe, our beef quota access dropped way back to 3400t of beef access, with 20 per cent import duty," he said.
"The day this deal comes into force, we'll have 35000t of access just to the UK with no duties.
"This is a market of 60 million people and they value quality. We can set ourselves apart on quality."
For sheep meat, the UK deal will see a tariff-free quota of 25,000t at entry into force, which will expand to 75,000 in year 10. Tariffs on sheep meat will also be eliminated after ten years.
Given Australia's constrained supply, with slaughter numbers well down on the five-year average, there is no chance Australian beef will flood the UK market, industry leaders say.
Global demand for beef continues to grow and the outlook is very bright, according to Mr Crowley.
There was room for all the world's suppliers to play, he said.
"Whenever there is a movement in market access like this, and Australia prioritises one market over another, competitors come in and backfill demand," he said.
ALSO IN BEEF:
Market access really was a game changer for Australia's beef industry, he said.
"It wasn't that long ago we had just a handful of FTAs that only covered about 30pc of our markets," he said.
"Today, 90pc of our exports are covered under FTAs.
"Prior to an FTA with Korea being signed, 40pc duty was added onto our product at point of entry - that goes to zero under the FTA. Japan's 38pc goes down to 9pc.
"And we are getting very close to liberal access to the US."
Shan Goodwin
Shan Goodwin steers ACM’s national coverage of the beef industry. Shan has worked as a journalist for 30 years, the majority of that with agricultural publications. She spent many years as The Land’s North Coast reporter and has visited beef properties and stations throughout the country and overseas. She treats all breeds equally. Contact 0427686187. E: s.goodwin@austcommunitymedia.com.au
Shan Goodwin steers ACM’s national coverage of the beef industry. Shan has worked as a journalist for 30 years, the majority of that with agricultural publications. She spent many years as The Land’s North Coast reporter and has visited beef properties and stations throughout the country and overseas. She treats all breeds equally. Contact 0427686187. E: s.goodwin@austcommunitymedia.com.au
