CANBERRA: Tariff cuts gained under the Korea-Australia Free Trade Agreement (KAFTA) have seen agricultural exports lift in the past six months. Figures released today by the federal Agriculture Department show red meat, horticulture and dairy exports to Korea have increased.
According to Agriculture Minister Barnaby Joyce, “The elimination of the 24 per cent tariff on cherries to Korea has seen Tasmanian cherry exports grow from virtually zero in 2014 before KAFTA’s entry into force to over $3.5 million in the first seven months of the agreement—that’s an increase of almost 5000 per cent.
“Tariff reductions on table grapes from 45 per cent to 18 per cent for our export season combined with finalisation of the table grape health protocol has seen nearly $2 million worth of exports this year from a zero base.
“In the first six months of 2015, macadamia exports to Korea increased 117 per cent to 302 tonnes compared to the same period in 2014, now worth $6.3 million—this is largely due to the almost halving of the tariffs from 30 per cent to 18 per cent.
Mr Joyce said trade deals were important in achieving a competitive advantage for Australian farmers in a global market and that Labor and the unions should take note of the significant benefits they deliver.
“Australia is very well positioned to supply markets in Asia—our reliable clean, green reputation, high quality produce and proximity to big importers in the region are big advantages—but we also have stiff competition from other nations in these markets,” Mr Joyce said.
“Korea is an important destination for Australian agricultural exports—one of the top five importers of our agricultural products—but high tariffs have been a barrier for our exporters in the past.
“Trade agreements—like those signed with Korea, Japan and China—can give our farmers a competitive edge over other agricultural exporting nations in the region, and give our producers the best possible conditions to get a fair return for their products.”
