TRADE UPDATE - Beef & Dairy Exports / Brexit / AU-EU Free Trade Agreement

TARIFF CHANGES FOR AUSTRALIAN BEEF AND DAIRY PRODUCTS EXPORTED TO THAILAND

From 1 January 2020 tariff rates will decrease to zero on a number of Australian beef and dairy products exported to Thailand under the Thailand-Australia Free Trade Agreement (TAFTA) and the ASEAN-Australia-New Zealand FTA (AANZFTA).

Under TAFTA, a special agricultural safeguard provision will remain in place for some beef and dairy products until the end of 2020. This safeguard limits the quantity that can be imported under the TAFTA preferential tariff rate (zero rate).

Under AANZFTA, from 1 January 2020 the same beef and dairy products will have a zero tariff rate and no quantitative restriction. This makes AANZFTA a more favourable option for exporters and importers of products with TAFTA special safeguards still in place in 2020.

For further information, refer to the DFAT FTA portal, or view the TAFTA Special Safeguard Schedule.

BREXIT
 
Freight & Trade Alliance (FTA) is maintaining close contact with our UK counterpart in terms of Brexit developments (yes another FTA – the Freight Transport Association)
 
The FTA UK have kindly provided this week's "No Deal Readiness Dashboard" – available HERE
 
The original list of unfinished actions were drawn up after the aborted leaving date in March, and therefore reflects the state of readiness of UK border procedures at that time. These requirements only come into effect if the Withdrawal Agreement between the UK and EU is not ratified, by 31 October and no extension is given.
 
Since the weekend the UK FTA have started a second Dashboard of all items that they need to clarify about how the border between GB, Northern Ireland, and the Republic of Ireland will operate in the event of no further improvements being reached in a Free Trade Agreement by the end of 2020.
 
It appears as though the replacement arrangements for the Backstop may be politically convenient but they are a logistical nightmare.
 
AUSTRALIA - EUROPEAN UNION FREE TRADE AGREEMENT
 
Australia and the European Union (EU) launched negotiations for a free trade agreement on 18 June 2018. As a bloc, the EU is Australia's second largest trading partner, third largest export destination, and second largest services export market. The EU was Australia's largest source of foreign investment in 2018.
 
I had the privilege to join peak industry representatives in Canberra on 17 October 2019 to meet with the Chief Negotiators for the Australia– European Union Free Trade Agreement, Ms Alison Burrows (Australia) and Ms Helena König (European Union) – further updates will provided as they become publicly available – in the interim please do not hesitate to contact me at acrawford@FTAlliance.com.au