Farmers welcome RCEP trade pact but eyes are on the future

The 15-nation Regional Comprehensive Economic Partnership is one of the biggest deals Australia has signed — but farmers could benefit more from what’s not yet in it.

Trade Minister Simon Birmingham signs the Regional Comprehensive Economic Partnership on Sunday, as Prime Minister Scott Morrison looks on. Picture: AFP/ Vietnam Host Broadcaster

AUSTRALIAN farmers are hoping a new regional trade pact will open another pathway to one of the most promising markets in South East Asia.

While India so far remains outside the Regional Comprehensive Economic Partnership, the option remains for it to join the 15 other countries that are part of the deal.

Ministers from Australia, China, New Zealand, Japan, South Korea and the 10 ASEAN nations on Sunday signed the agreement, which will create Asia’s biggest free-trade zone.

As Australia already has bilateral free-trade agreements with all signatories, RCEP will not mean any immediate new tariff cuts or new markets; it will however introduce a single set of rules for accessing preferential tariffs or dealing with non-tariff barriers in any of the 15 countries.

RCEP’s real value for agriculture is arguably in the future opportunities it holds: an open invitation to India, and a chance to reboot Australia’s diplomatic relationship with China following a tense year. 

India – which is expected to become the world’s third-largest economy by 2035, with 51 per cent middle class – was part of negotiations for RCEP for eight years before withdrawing last year partly due to fears it would lead to a flood of imports.

Australia’s own negotiations for a free-trade deal with India have long-stalled, with agriculture one of the sticking points; RCEP would be a way for Australia to increase its trade without an individual deal in place. 

National Farmers’ Federation chief executive Tony Mahar was pleased the option to join was still open to India, as it held “significant potential” for farmers.

The Federal Government earlier this year touted India as a potential alternative market for Australian barley, after China slapped growers with import duties of 80 per cent.

But GrainGrowers chair Brett Hosking said India’s zero tolerance approach to weed seeds such as wild radish meant grain exporters couldn’t get in to the market.

“As good as Aussie growers are, being able to guarantee there’s not one wild radish seed is a pretty tough ask,” he said.

“But we want to make sure we do supply them with a product that fits their needs … it’s about ensuring we can reduce those barriers that sit there, particularly for products like barley, and making sure further dialogue continues.”

Mr Hosking said it would also be “incredible news” for Australian grain growers if RCEP opened the way to communication with China.

Diplomatic tensions between the two nations on a range of issues has translated to China whacking Australia’s agricultural trade with a range of official and unofficial sanctions this year.

Trade Minister Simon Birmingham said RCEP was a sign of Australia and China’s “willingness to continue to work in regional co-operation”.”