Australia’s network of free trade agreements continues to offer valuable opportunities for sectors such as red meat, grain, seafood, horticulture, and other industries in agriculture.
The Federal Government’s focus on trade diversification has broadened global market opportunities. This includes agreements with the United Kingdom, India, and the recently signed deal with the United Arab Emirates, which will provide further market access once applied.
“Australia’s prosperity is directly linked to trade. More trade, with more trading partners, means more jobs, more pay, more opportunities, and a lower cost of living,” said Minister for Trade and Tourism, Senator Don Farrell. “The lifting of trade impediments affecting our exports of barley, oaten hay, cotton, timber, wine, and seafood to China is testament to what can be achieved by a government that has a steady hand on the tiller.
“Our job is to continue supporting our primary producers by opening doors for exporters and build on the trade outcomes we have achieved since coming to office.”
Meanwhile, Minister for Agriculture, Fisheries and Forestry, Julie Collins MP, pointed out the critical role trade plays for farmers.
“Trade is critically important to agriculture, and by strengthening the sector we create new opportunities for small business and regional communities, and importantly higher paying jobs both directly in agriculture and across the supply chain. Tariff and quota improvements in existing bilateral free trade agreements that take effect this week, as well as exciting gains in new agreements, promise to deliver new and diversified trade opportunities for Australian farmers in 2025.
“For example, Australian red meat exports increased in 2023–24 and are expected to reach a new record in 2024–25, aided by further reductions in tariffs on Australian beef exports to Mexico and Korea and expanded beef quotas under the Australia-United Kingdom FTA.
“The India, UK trade agreements are supporting expanded opportunities, and the recently signed FTA with the UAE will provide new opportunities for Australian sheep meat exports”.
With these improved market conditions and the efforts of Australian farmers, agriculture exports are expected to reach $70.1 billion in 2024–25, the third highest on record. Trade supports Australian jobs, with one in four jobs linked to trade. Export-related jobs also offer 10 per cent higher average annual incomes.
Among the tariff reductions and trade agreement renewals is the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which has been ratified by all original signatories. Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
The CPTPP recognises the challenges facing Small and Medium-sized enterprises (SMEs) in establishing export markets and includes outcomes to help make this task easier in the CPTPP region.
There is also the Australia – United Kingdom Free Trade Agreement, which includes key commitments that create new export opportunities, reduce business input costs, and strengthen trade diversification. It also aims to ease cost-of-living pressures for consumers, with tariffs being removed on more than 99 per cent of Australian goods exports to the UK.
According to recent Federal Government figures, Australia’s largest food exports to the United Kingdom includes sheep meat, wine, seafood, beef, and almonds. Meanwhile, the Australia – India Economic Cooperation and Trade Agreement (IA-ECTA) helps secure access to the fast-growing Indian market of over 1.4 billion people and gives Australian businesses opportunities for trade diversification.
Citrus, almonds, sheep meat, and seafood are also among some of the largest food exports from Australia to India.
And then there is the Australia – UAE Comprehensive Economic Partnership Agreement (A-UAE CEPA). In December 2023, Australia and the UAE announced the start of negotiations for a Comprehensive Economic Partnership Agreement, a bilateral free trade agreement aimed at strengthening economic ties.
As stated by Senator Farrell, these developments and agreements around free trade, and the lifting of tariffs, are set to benefit the food and beverage manufacturing industry beginning
this year.