The next round of Trans-Pacific Partnership (TPP) negotiations, represent a major opportunity for Australian dairy, according to the Australian Dairy Industry Council (ADIC).
The TPP is a multi-country Free Trade Agreement (FTA) currently under negotiation between Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, Japan, the United States, Vietnam, Mexico and Canada.
ADIC Chair, Noel Campbell, said the 21st round of negotiations, to be held in Singapore this weekend, is of huge interest and importance to the local industry.
“The ADIC views the TPP negotiations as a major opportunity to achieve a high quality agreement that frees up market access and delivers positive commercial outcomes for Australian dairy producers,” Mr Campbell said.
“This is essential if we are to grow our industry by capitalising on rising international demand for dairy products, particularly in Asia.
“The Australian dairy industry already exports almost $3 billion worth of products each year, in spite of a range of trade barriers and distortions, and seeks a level playing field if the industry is to build on this figure in future.”
Of the top ten Australian export destinations in 2012/13, four countries are TPP members:
- Japan($511million);
- Singapore($218million);
- Malaysia($174million);and o NewZealand($157million).
A further three countries are potential members:
- Indonesia($148million)
- Philippines($90million);and o SouthKorea($88million).
Mr Campbell said the potential for growth in Australian dairy exports to TPP member countries, highlighted the scale of the opportunity for the local industry.
“If the industry can achieve export figures like this in spite of significant trade hurdles, then one wonders what could be achieved through a commercially meaningful TPP agreement,” he said.
Mr Campbell said a key focus in the negotiations should be the prohibition of export subsidies including those funded by producers such as Co-operatives Working Together (CWT) in the United States.
“Additionally, we seek genuine reform of non-tariff barriers as a means of facilitating trade between member countries,” he said.
“These should be based around sound science, adherence to international standards and appropriate information sharing and co-operation.”
Mr Campbell said progress on TPP negotiations should not impact upon, or delay efforts to secure commercially meaningful FTAs with Japan and China.
“If realised, these bi-lateral agreements have the potential to be of huge benefit to the dairy industry, and should remain a prime focus for the Federal Government.”
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