Are you ready for the Free Trade Agreement?

 

 Hi Subscriber

Farmers and businesses involved in rural industries are smiling.

The Japan-Australia Economic Partnership Agreement has taken effect as of January 15th.

If your business is a part of the red meat industry in Australia, exporting goods to the Japan has become a lot easier and a lot less expensive.

 

Tariffs on frozen beef from Australia will drop to 19.5% (down from 38.5%) over the next 18 years. Chilled beef will experience a similar decrease from 38.5 to 23.5% over the next 15 years.

Projections are that the JAEPA sales of Australian beef to Japan will rise by around $5.5 billion over the term of the agreement. 

 

But other sectors of the agricultural industry are also going to benefit.

 

 

Sugar growers and processors in Australia will enjoy the reduction of levies, and removal of tariffs

 

Australia's pork producers have had their export quotas to Japan almost trebled. Meanwhile tariffs have halved. 

 

 

The dairy industry is receiving an extra 20,000 tonne, country-specific, duty-free cheese quota.

 

Vignerons say the elimination of wine tariffs will put them on a level playing field with one of Australia's main rivals Chile. They have a 14% market share in Japan versus Australia's 4%.

 

Macadamia growers are particularly excited with 20% of the Australian crop already sold in Japan. The 3% tariff will be immediately removed once the deal takes force.

Tariffs will also be "bound at zero" for wool, cotton and lamb.

With FTA’s also inked for China and South Korea there is scope for much enthusiasm.

The growth and increase in exports envisaged for the future is good news for farmers. We want to help your business with any increased storage requirements you may need as you respond to this upturn.

We send our products all over Australia and can provide same day quotes and quick shipments of our products to your premises.

We are offering 20% off the RRP on all our Longspan and Minispan systems during February. Lock your discount in by contacting steve@cityshelving.com.au or make a free call on 1800 683 967.