March 8, 2013

Beef trade talks between Australia and South Korea have occurred after the first shipment of Chilean beef arrives in Korea during February 2013, according to Meat and Livestock Australia and the Animal, Plant and Fisheries Quarantine Inspection Agency.

In February, a 25.84 tonne beef shipment arrived from Chile into South Korea.

The first ever beef trade between the two countries, the initial shipment is expected to be the first of many in a growing trade relationship.

As well as new routes opening up from Chile, key business leaders have been discussing the possibility of importing Australian (http://) beef.

Urgency from Australian negotiators to establish a Australia Korean Free Trade Agreement (AKFTA) grew after the US secured a free trade deal agreement, according to Meat and Livestock Australia.

US beef tariffs are 5.4% lower than Australia, according to Meat and Livestock Australia.

The tariff differential widens by a further 2.66% on January 1 each year, with US beef expected to enter tariff-free into Korea, by 2026. Continued delays in the AKFTA negotiations could see a significant decrease in Australian beef sales at its third largest export market, valued at US$645 million in 2012.

The delegation shared results of recent modelling by the Centre for International Economics which indicates the Australian beef industry will incur a cumulative loss of about US$1.4 billion over the 15 years when the tariff on US beef is reduced to zero, assuming no similar tariff treatment for Australian beef.

The delegation consisted of representatives from the National Farmers' Federation, the Cattle Council of Australia, the Australian Lot Feeders' Association and the Australian Meat Industry Council.