Australian horticulture growers set to be among the winners under new Trans-Pacific Partnership

The National Farmers Federation has welcomed the ratification by the Australia government of the Trans-Pacific Partnership (TPP-11) trade agreement, which it says is a major step in reach our vision of a $100 billion farm sector by 2030.

Australia became the sixth country to ratify the agreement, joining Canada, Japan, Mexico, New Zealand and Singapore as part of the first group.

NFF President Fiona Simson says it means Australian farmers will benefit from the first round of tariff cuts on 30 December and another round of cuts on 1 January 2019.

"TPP-11 delivers improved market access," she said. "These outcomes will increase investment on-farm in jobs, innovation and efficiencies that will flow through to rural and regional economies."

TPP-11 market access outcomes for Australian horticultural producers and exporters include citrus trade deals with Japan, which will extend the period by which oranges will face the lower “out of season” tariff to an 8 month period (from 1 April to 30 November), and will eliminate that tariff over 6 years. The higher “in season” tariff will be eliminated over 7 years.

Japan will also eliminate all tariffs on fruit juices within 10 years of entry into force of the TPP-11, building on the quota arrangements achieved under JAEPA.

Elimination of all Canada’s horticulture tariffs upon entry into force of the TPP-11, and elimination of most of Mexico’s horticulture tariffs immediately, and removal of all tariffs within 15 years of entry into force.

Total Australian horticulture exports were valued at $5.1 billion in 2017, and 14 per cent of these exports (valued at $756 million) went to TPP-11 countries.

"The TPP-11 is one of the most comprehensive and ambitious trade agreements in Australia’s recent history. It will help support Australian businesses to grow and see annual benefits of up to $15.6 billion to our national economy by 2030," Federal Minister for Trade, Tourism and Investment, Simon Birmingham said.

The NFF says conclusion of the TPP and subsequent agreement on the TPP-11 is an historic outcome. It importantly delivers new market access for Australian agricultural exports and increases the competitiveness of Australian food and fibre products in global markets. It will strengthen regional supply chains and build prosperity.

“Reaching consensus with 10 other nations on such a game-changing deal for regional trade is no small achievement," Ms Simson said. "The TPP-11 will improve trading conditions for Australia’s farm sector and help reach our vision of a $100 billion farm sector by 2030. TPP-11 expansion will further help us achieve this goal."

For more information, visit the Department of Foreign Affairs and Trade website, or call +61 2 6261 1111.

National Farmers' Federation
Phone: +61 2 6269 5666 

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