Trans-Pacific Partnership – Agriculture Highlights

Key highlights:

·         The Trans Pacific Partnership delivers tariff reductions and improved market access for Australian agricultural products. With TPP countries representing a third of Australian agricultural exports, these benefits are potentially significant.

·         Protein – this tariff reduction will remove the competitive advantage Australian beef was to enjoy as a result of the recently negotiated Japan-Australia Economic Partnership Agreement (JAEPA).

·         Grains, cereals and sugar – Japan will create a new 6,000 tonne quota for Australian rice, growing to 8,400 tonnes after 12 years. Around one third of Australia’s sugar exports ($510 million of $1.5 billion) were destined for TPP countries in 2014. The agreement will grant and additional 65,000 tonnes to Australia’s US quota upfront, as well as 23% of future additional WTO quota allocations.

·         Dairy – Japan, one of Australia’s most important dairy export markets, will lower tariffs and introduce new quotas for certain dairy products.

·         The full details of the TPP are yet to be released, and hence a comprehensive assessment of the costs and benefits to Australia is not currently possible. At this stage, there is little clarity around any concessions made.

Phin Ziebell, Nab Agribusiness Economist

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