Federal Budget 2020: Ag exports in flight as new free trade deals on the horizon
A popular airfreight program that has boosted ag exports has received a third extension while the Government flags new trade deals are in its sights. Here’s how farmers will benefit.
FARMERS will continue to be able to get their produce to key overseas markets, as the Federal Government extends its airfreight subsidy program until next June.
It comes as the Federal Government unveiled plans to pursue new trade deals in tonight’s budget.
A further $317 million will be invested in the International Freight Assistance Mechanism, which has already helped deliver about 136 tonnes of Australian goods abroad.
The scheme has proven popular with exporters since it was first announced in April in the wake of the coronavirus pandemic.
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Global travel bans saw exporters struggling to access freight, with produce usually travelling in the bellies of passenger planes.
The program has helped set up dedicated airfreight routes and lower the cost for farmers.
As of September, there have been more than 5700 flights to locations including China, Japan, Hong Kong, Singapore, Malaysia and the Middle East.
The Government has also put $6.6 million toward pursuing new free trade agreements, and boosting digital trade opportunities regionally.
It comes as Australia has faced a challenging year in terms of trade, following ongoing diplomatic tensions with our biggest trading partner China, prompting calls from industry for greater trade diversification.
Countries to be targeted for new trade deals have yet to be determined.
The Government said it will also aim to simplify trade and reduce red tape for exporters, including a new industry advisory panel and new ministerial taskforce.
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