The landmark free trade agreement that will see all tariffs on Australian beef shipped to the United Kingdom eliminated after ten years will be in place from the end of this month.
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It has been labelled the best trade deal the beef industry has struck, opening much wider doors to one of the highest value markets, in dollars-per-kilogram terms, that Australian beef exporters supply.
While concerns have been raised around cost of living pressures in the UK perhaps dampening demand in the short-term, most in Australia's cattle industry see the long-term benefits of building on this market as having enormous potential.
"This is an amazing outcome for both the UK and Australia and will allow an open market to eventually operate for the first time in 40 years," beef consultant Steve Martyn said.
After the two prime ministers met in London on Friday, a long-awaited entry into force date for the Australia-United Kingdom Free Trade Agreement was announced.
From midnight on May 31, Australian beef exports will enter the UK under a new tariff-free regime, with first-year tonnages of up to 35,000 tonnes gradually increasing over the next 10 years. After that, a volume safeguard provision will apply for an additional five years and then it will be entirely a free market.
The deal, which sees an end to tariffs on almost all Australian goods sent to the UK, was initially agreed to in principle mid 2021.
Beef industry leaders have welcomed the final steps with open arms, and report exporters have already lined up their ducks to get shipments underway.
"The FTA marks a new chapter in Australia-UK trade relations and, for our sector, provides an important framework to continue to do business with British customers and consumers," said Andrew McDonald, chair of the Australia-UK Red Meat Market Access Taskforce.
"Australia and the UK have a long history of trade with British consumers being loyal purchasers of Australian beef and sheepmeat.
"The FTA provides an opportunity to modernise our trading relationship for the future, and we look forward to more streamlined trade and reduced supply chain costs with the implementation of the agreement."
Peak grassfed cattle producer body Cattle Australia said the deal offers access to the UK market not seen in generations.
Chair David Foote said Australia was a world leader in producing high-quality, healthy and sustainable beef, underpinned world-leading traceability systems to achieve customers' expectations.
"As such, Cattle Australia is urging the UK government to recognise Australia's highly developed industry systems in managing and tracking HGP treatments in cattle," he said.
Not only would the deal see much more Australian beef on the menu in the UK, it would help to further diversify Australia's beef export markets and the growing list of countries with which free trade access exists, he said.
Shan Goodwin
Shan Goodwin steers ACM’s national coverage of the beef industry. Shan has worked as a journalist for 30 years, the majority of that with agricultural publications. She spent many years as The Land’s North Coast reporter and has visited beef properties and stations throughout the country and overseas. She treats all breeds equally. Contact 0427686187. E: s.goodwin@austcommunitymedia.com.au
Shan Goodwin steers ACM’s national coverage of the beef industry. Shan has worked as a journalist for 30 years, the majority of that with agricultural publications. She spent many years as The Land’s North Coast reporter and has visited beef properties and stations throughout the country and overseas. She treats all breeds equally. Contact 0427686187. E: s.goodwin@austcommunitymedia.com.au
