Australian farmers Face $4 Billion Hit From Non-tariff tradeโฃ Barriers
Sydney, Australia – October 27, 2023 – Australian farmers are facing a significant financial blow, โwith non-tariff trade barriers costing the agricultural sector an estimated $4 billion annually, even before the โimpactโ ofโ recently imposed tariffsโ like โขthose announcedโฃ by Donald Trump.
While โคimport restrictions on Australian beef lifted in July this year, industry โexperts warn a rise inโ non-tariff measures – regulations, inspections, and other hurdlesโ -โข are increasingly being used byโ importing nations to protect domestic industries.
“Ultimately, most countries are net importers, โso the reason they are doing these non-tariff barriers is because it โis protectionism; they’re protectingโ their food security and their farmers for the future,”โค saysโฃ 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 andโ exporters” and that the department โฃis developing a strategy to address them.
New estimates from ABARES indicate Australian agricultural exports are projected to โfall byโข almost โฃ$2 โbillionโข this financial year, driven by declining grain prices and reduced โฃlivestock โขprocessing volumes. Farmers argue addressing the $4 billion in losses from non-tariff barriers is now critical.
The issue is โขexpected to be a key considerationโ as Australia โpursues a potential trade dealโฃ with the โEuropean Union, with farmers seeking a strong voice in negotiations.
Meanwhile, the United States recently announced a 100 per cent tariffโ onโค imports of branded or patented pharmaceutical products from October 1, unlessโ pharmaceutical companies establish manufacturing plants within the US.