CANBERRA: In the past 18 months, Australia has signed major free trade agreements (FTAs) with Japan, South Korea and China. These FTAs are set to significantly benefit the Australian agriculture sector and the nation’s premium producers will be among the biggest winners.
Primary producers, such as beef cattle farmers, dairy cattle farmers and grape growers, will indirectly benefit from increased demand, while tariff reductions and better access to Asian export markets will assist related downstream industries.
“Beef exporters will be big winners in all three free trade agreements thanks to tariff removals and Australian beef’s premium image in Asian export markets. Dairy and wine producers will also benefit as gradual tariff removals allow Australian produce to compete with exports from countries such as the United States,” said IBISWorld analyst, Brooke Tonkin.
The FTAs with South Korea and Japan came into effect on 12 December 2014 and 15 January 2015 respectively, and the FTA with China is set to come into effect by January 2016. This means that these export markets will become increasingly accessible for Australian producers over the next five years.
On top of these agreements, other factors will simplify entry into these markets. A depreciating Australian dollar over the next five years will continue to make these goods more affordable in overseas markets. Rising incomes in many Asian countries are encouraging consumption of high-quality Australian produce.
