Australia currently has in place 9 free trade agreements with more currently under negotiation. Free trade agreements help exporters to be more competitive in a global economy by allowing for a reduction in tariffs (import duties) on goods that we export to certain countries (amongst other benefits) – at its most basic, if a tariff applies to oranges we export to Japan, then the price of our oranges is relatively higher in Japan, allowing for a competitive advantage to the Japanese produced orange. If that
tariff can be reduced through a free trade agreement, then our oranges become more price competitive and in theory, we can sell more of them.
With the exception of vegetables and fruit, agriculture within the Wheatbelt (of which the Northern Valleys is a part) is very export oriented with the vast majority of grains and livestock exported. Austrade has found that companies that export are more profitable than those that only do business within Australia, however working out how the free trade agreements can create opportunities for your business can be very difficult. Determining how your product is treated under any of the free trade agreements first requires the producer to properly identify how their product is identified internationally under the Harmonized Commodity Description and Coding
System commonly referred to as the Harmonized System (HS). This is a broad classification system of around 5000 product categories.
Once you have the HS code applicable to your product you can review each of the free trade agreements (available for download via www.dfat.gov.au) and determine how your goods will be treated under each agreement. This is indicated in the schedules (and a warning – the Japan Australia Free Trade Agreement schedule runs to over 400 pages long!!).
Lots more is involved but I think you might get the idea. It’s a cumbersome, lengthy process that most time-poor growers would think twice (or thrice) before doing. However it can be worth it. For example, under JAEPA, Australian exporters of a range of agricultural products will certainly benefit – this includes exporters of orange juice, honey, poultry offal, pork, prepared or preserved meats, edible bovine offal – all of which are relevant to the Northern Valleys.
If your business is not already exporting, there are a number of steps you need to go through to become export ready. If you are interested in finding out how
you can take advantage of Australia’s North Asia Free Trade Agreements (FTAs) with Korea (KAFTA), Japan (JAEPA) and China (ChAFTA), I recommend you register on line for the Australian Trade Commission seminar http://www.austrade.gov.au/myaccount/AddEditAlert.aspx?mode=Add
The interactive seminars will give you an opportunity to hear directly from the Australian government on the practical benefits that you may be able to realise from the FTAs. No seminar is currently scheduled for Western Australia but if enough of us register we can bring it here!
Alternatively, if you are interested in a local seminar on becoming ‘Export Ready” email me at cammerayfarm@bigpond.com and if we have enough interest, I’ll organize it.
