October 7, 2015
Australian beef producers to benefit from TPP agreement
The recently concluded Trans-Pacific Partnership (TPP) could favour Australia's cattle and beef producers, said Troy Setter, the chief executive of Consolidated Pastoral Company (CPC), as the deal liberalises live cattle exports to Japan and abrogates tariffs on deliveries to Mexico, Canada and Peru.
Local beef and cattle producers were reportedly satisfied with the outcome while producers in the Northern Territory might benefit from the TPP.
"I really think that the TPP that has been completed over the weekend is great for the whole of Australia's beef industry, and that will also have positive flow-on impacts to northern beef producers, who will have their markets linked through to more markets globally for beef," Setter commented.
Presently, CPC runs over 20 cattle stations across the Northern Territory, Western Australia and Queensland.
While about 52% of Australia's beef, mutton and offal exports are destined for TPP countries, current tariffs amount to a hefty $1 billion tax on the supply chain, according to Meat and Livestock Australia. The organisation believes that the TPP will bolster the global competitiveness of Australian red meat with "more seamless trade rules, reduced costs and less red tape", resulting in a more convenient response to market demand across the Asia-Pacific region.
The TPP is expected to put down 98% of overall tariffs on all sectors including food, manufactured goods and energy, said the Australian government.