CANBERRA: Agricultural exporters have welcomed the start to 2016 with the third round of tariff cuts, negotiated under the Free Trade Agreement with Korea, coming into force. It’s more than a year now since the Korea-Australia free trade agreement came into force, and many agricultural industries have enjoyed a boost in exports.
Agriculture Minister Barnaby Joyce says Australia is capitalising on its clean, green image with food exports surging to Korea, though some are coming from a very low base.
‘Nuts are becoming an important export commodity to Korea, worth over $10 million in 2014-15. Almonds in shell will have the current tariff of 6.4 per cent reduced to 5.6 per cent, and macadamia nuts will have the current tariff of 18 per cent reduced to 12 per cent.
‘Table grapes will have the current tariff (for our export season) of 18 per cent reduced to 12 per cent. Exports of Brussels sprouts will also become more commercially attractive with tariffs being lowered to 15.4 per cent from the current 19.2 per cent. This is down from 27 per cent pre-KAFTA.’ Australia’s beef sector also gains a slight improvement with the latest cuts.
From today, fresh, chilled and frozen beef imports from Australia to Korea will attract a tariff of 32 per cent, slightly better than the tariff of 34.6 per cent during 2015. While the overnight improvement is just 2.6 per cent, the current level is a vast improvement on the tariff of 40 per cent in place before the agreement came into force in December 2014. It will be gradually reduced until it is completely eliminated in 2028.
Cattle Council Australia president Howard Smith said even the minor change overnight would make a difference to Australian exporters and securing the agreement would prove to be a clear victory as the years unfold.
