Ag exporters readying for three new free trade agreements

Free trade agreements are imminent with some of the world’s biggest markets. Find out about them here.

Australian red meat and grain producers are in the box seat for export growth with three free-trade deals with the UK, India and European Union expected to be finalised by early next year.

Trade Minister Don Farrell has been entertaining European parliamentarians as they work to broker a free-trade agreement. Picture: Martin Ollman

Trade Minister Don Farrell has played host to European dignitaries in recent weeks to continue negotiations on a free-trade agreement with the EU, expected to be completed by early next year, while agreements with the UK and India should be in place before the end of the year.

Grain Growers chairman Brett Hosking said farmers were hoping for access for Australian gluten into Europe, and the removal of barriers related to chemical and environmental regulations currently limiting Australian grain, oilseed and pulse exports.

Grain and pulse producers were also optimistic about the deal with India, Mr Hosking said.

“When it comes to India, chickpeas are the big words on everyone’s lips,” he said.

“We’d like the opportunity to get access into that market, to supply a locally produced and sustainable chickpea.”

Currently, tariffs are set to be reduced to zero for Australian barley and oats when the deal with India comes into force.

Mr Farrell has been at pains to stress that the focus of any deal with Europe was significant access to Australian agricultural goods, namely meat and grains.

“I reiterated that Australia could only agree to a trade deal that generates new, commercially meaningful market access opportunities across all sectors, including agriculture,” Mr Farrell said.

A sticking point remains the EU’s desire to protect geographical indications for products such as feta cheese and prosecco.

Australia has some weight to throw behind its demands given Europe’s pressing desire to diversify its procurement of critical minerals away from China, with Australia home to the largest supply of four critical minerals in nickel, rutile, tantalum and zircon.

Director of agricultural advisory firm Episode 3 Matt Dalgleish said red meat exports should gradually rise over the next decade as markets in India, the EU and the UK grew.

“It’s a good thing having these new markets open up, but they will come into their own in the next three to five years rather than into next year,” Mr Dalgleish said.

There was a big opportunity for sheep and goat meat exports into India given the country’s booming demand for protein, he said, as well as beef for the nation’s Christian population.

“Looking at the growth in protein demand in OECD countries, the three biggest ones are India, Indonesia and China. And there is a Christian population in India who do eat beef. Maybe not all have the wealth but as that country grows in wealth and size, a prospective market of 30 million people is not something to sneeze at, but the primary market will be sheep and goat meat.”

The UK and India FTAs were delayed by the May federal election. They have been re-referred to the treaties committee, which will report on each agreement by November 18, ensuring enough time is left before the end of the year to workshop any legislative amendments.