What does the TPP mean to us Foodies?

A Free Trade Agreement is intended to improve the trading between countries. There has been a lot of hype, both positive and negative, about the Trans-Pacific Partnership (TPP). This is probably the single largest free trade agreement in the world right now and impacts about 40 percent of the earth’s economy.

It is important to remember that in such agreements, it is not just trade that is include, things like copyright, medicines and computer issues are also often included, and this just confuses many people.

These agreements are really about each country going into the negotiations to get the best deal it can in a variety of issues.

So how does the TPP affect us Foodies?

Meat Industry – as 55 percent of our beef goes to those countries in the TPP, there will be significant tariff reductions and greater access to markets. A tariff is a form of a tax imposed on importers to protect companies and industries with the country, so a reduction and eventual elimination of tariffs in most TPP partners will level the playing field for Australian meat exporters.

Cereal / Grain Industry – Tariffs will be reduced and in some TPP partners, eliminated entirely. There will also be increase in market access and quotas.

Dairy Industry – Increased access to the Japanese market and the US is going to reduce it’s tariffs, whilst Canada and Mexico will be introducing new quotas.

Rice Industry – is a big winner with a massive increase in rice about to go into Japan.

Sugar – many believe that the benefits her are not enough but the TPP does give Australia the largest access granted to any sugar exporting country and there will be tariff decreases in other countries.

Wine Industry – currently 45 percent of our wine exports are going into TPP countries, so the tariff eliminations (over time) will be a huge advantage to this industry.

Horticulture Industry – the big news here is the reduction in tariffs on oranges going into Japan and the elimination of tariffs on fruit juices.

The Parliaments of each of the12 TPP countries now have to approve the Agreement, so it may be some time before it becomes enforceable.

So what did we have to give us to get these trade conditions?

Is it a good agreement for this country?

Only time will tell.