Australian red meat industry expectant on benefits of JAEPA

09-Jul-2014 - Last updated on 10-Jul-2014 at 09:17 GMT

Australia is optimistic about the effect of the deal on its beef industry

Related tags Australian beef International trade Beef Lamb

The Australian red meat industry has said it expects to realise significant benefits from the signing of the Japan-Australia Economic Agreement (JAEPA) in Canberra this week.

The trade deal was agreed on 8 April, and will give Australia greater access to a number of Japan’s key agricultural markets, particularly beef.

Under the new trade partnership, the tariffs on frozen Australian beef entering Japan will be lowered from 38.5% to 19.5% over the next 18 years – with an 8% cut in year one. While tariffs on chilled beef will be reduced from 38.5% to 23.5% over a 15-year period, with an initial 6% cut in year one.

Lachie Hart, chairman of the Australian Beef Industry Japan EPA Taskforce, said: "Independent modelling suggests the JAEPA will benefit Australian beef export sales to the tune of $5.5 billion over 20 years and thereby deliver an increase in the annual gross value of Australian beef production by up to 7%."

He said the reduction in tariffs would provide Australian beef with a "useful preferential tariff advantage" over other imported beef suppliers into the market.

Hart added:"Our industry continues to seek the elimination of all global import tariffs – including those which Japan will maintain on our products. Additional trade reform with Japan, involving potential gains from the current Trans-Pacific Partnership and Regional Comprehensive Economic Partnership negotiations, will be vigorously pursued."