November 29, 2012

Exports from the US are starting to hurt Australia's beef export market share in South Korea.

The US has signed a free trade agreement with South Korea which will see tariffs on beef exports reduced to zero over 15 years. About 36% of Australia's beef exports go to South Korea worth US$1.6 billion per year. This means Australia's beef export is under pressure of these tariffs on beef exports if the government fails to quickly secure a free trade agreement with South Korea.

"Our market share in that market in Korea will come under extreme pressure unless similar tariff reductions come into place in Australia," Andrew McCallum from Meat and Livestock Australia told a parliamentary inquiry in Canberra.

"That deliverable is critical given our major competitor in the market, the US, has secured a reduction in the 40% tariff to zero over 15 years. That puts us immediately at a competitive disadvantage," he said.