In 2021 Australian agricultural and seafood exporters are set to reap the rewards of significant tariff cuts and improved market access on a range of commodities traded across the Americas and Asia
Following the Indonesia-Australia Comprehensive Economic Partnership Agreement coming into force on 5 July 2020, more than 99% of Australian goods exported to Indonesia enter duty free or under improved and preferential arrangements.
Building on this, January brought increased Tariff Rate Quotas for live cattle, feed grain and citrus exports to Indonesia.
Tariffs on lamb and beef to Korea, some wine products and barley to Mexico and refined sugar to Canada are all due to fall in 2021, while exporters to Peru will benefit from tariff cuts on beef and sparkling wine as well as increased quotas for rice, dairy, sugar and sorghum.
Seafood exports to Vietnam have had further tariff reductions in January to 8% ahead of their complete elimination on 14 January 2022.
Korea is Australia’s fourth largest agricultural partner, and Indonesia is the fifth.
The total value of Australia’s exports to CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) economies for agricultural and food commodities was $8.4 billion in 2019-20.
- The CPTPP is a free trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. It entered into force for the initial ratifying countries on 30 December 2018.
- In full implementation the CPTPP will eliminate more than 98 per cent of tariffs in a trade zone worth $13 trillion when it was signed, covering 500 million people and, providing preferential access for over $5.5 billion of Australian agricultural exports.