NTMs are increasing and today are the priority trade policy issue for the grains industry. The market access challenge is ongoing and requires Government and industry to work together to address current and future challenges. This project has been a joint initiative of the Government and industry and demonstrates the value that can be captured from such activity. Addressing NTMs provides the greatest opportunity for the industry to increase trade and increase value for the industry, growers and the economy.
Grains Non Tariff Measures Project Report
Introduction
Market access is critical for the Australian grains industry, with more than 75% of production exported nationally. The grains industry provides jobs and economic growth to regional communities as a direct result of international market opportunities. The gross value of production for the grains industry was $17.8 billion in 2016/17, with record export revenue on the back of increased production.
As a trade exposed sector, ensuring competitive market access is essential for its continued prosperity. Continued and improved market access is an essential part of the grain industry’s platform that enables it to provide a high quality supply of grains, oilseeds and pulses to international customers.
Successive Australian governments have been highly effective in liberalising international trade with key trading partners through the pursuit of bilateral and regional Free Trade Agreements (FTAs). For Australian grain exporters, FTAs, and gains through WTO reforms, have delivered a reduction in tariff and quota restrictions across a range of export markets, resulting in the expansion of export market opportunities.
Thus, the focus has shifted to ‘non-tariff measures’ (NTMs) - a general term that describes government regulatory tools and policy measures, other than tariffs, that have the potential to affect the international trade in goods. While NTMs/regulations can serve legitimate biosecurity and/or food safety requirements, they can also be harmful to trade. NTMs can increase the difficulty, risk and cost of doing business and restrict market access for Australian grains.
This report summarises the array of NTMs currently affecting Australian grain exports. The grains industry actively monitors non-tariff measures in order to effectively prioritise and communicate the impact of these to Government and other stakeholders in order to improve trade policy outcomes.