Australian farmers Face $4 Billion Hit From Non-tariff trade Barriers
Sydney, Australia – October 27, 2023 – Australian farmers are facing a significant financial blow, with non-tariff trade barriers costing the agricultural sector an estimated $4 billion annually, even before the impact of recently imposed tariffs like those announced by Donald Trump.
While import restrictions on Australian beef lifted in July this year, industry experts warn a rise in non-tariff measures – regulations, inspections, and other hurdles - are increasingly being used by importing nations to protect domestic industries.
“Ultimately, most countries are net importers, so the reason they are doing these non-tariff barriers is because it is protectionism; they’re protecting their food security and their farmers for the future,” says agricultural economist Sarah Reardon.
The department of Foreign Affairs and Trade acknowledges the problem, stating that “non-tariff barriers are an obstacle to Australia’s agricultural exports, adding costs, delays and uncertainty for our farmers and exporters” and that the department is developing a strategy to address them.
New estimates from ABARES indicate Australian agricultural exports are projected to fall by almost $2 billion this financial year, driven by declining grain prices and reduced livestock processing volumes. Farmers argue addressing the $4 billion in losses from non-tariff barriers is now critical.
The issue is expected to be a key consideration as Australia pursues a potential trade deal with the European Union, with farmers seeking a strong voice in negotiations.
Meanwhile, the United States recently announced a 100 per cent tariff on imports of branded or patented pharmaceutical products from October 1, unless pharmaceutical companies establish manufacturing plants within the US.
