Australia’s federal government has launched a new initiative to reduce the costs and red tape confronting Australian exporters in international markets. Free trade agreements have removed or lowered tariffs on agricultural exports in some of our key markets in recent years, particularly in the Asia-Pacific.
But in some instances, Australia’s trading partners stymie market access with non-tariff barriers that fall outside the trade agreements. That is the reason the government today launched an Action Plan to identify and reduce non-tariff barriers, which it is estimated could deliver 10 times the benefit of halving tariffs.
Trade Minister Simon Birmingham said other countries are entitled to set trade rules to protect their interests, but in some instances unnecessary rules had been imposed at great cost to Australian exporters: “Tariffs and quotas are there for the whole world to see, but as we continue to shift towards a more open global economy, we’re seeing a trend towards the use of hidden or invisible trade barriers. Whilst many of these requirements are legitimate, we’re seeing a shift towards how regulations and red-tape are being manipulated and used as a deliberate tool to distort trade flows and protect domestic industries.”
Cherries to China
One example is visible in the export of cherries to China. Australian cherries gained access there in 2013 and now the $13 million market is one of the most valuable for producers. However, Australian producers were required to treat their cherries with a costly and time-consuming process that reduced the value of their crops. The federal government negotiated a new agreement with the Chinese Government which reduced the two-week process to a two-hour procedure.
Source: northqueenslandregister.com.au
