Australia's transition to unlimited beef access to the US

Published 2022년 3월 10일

Tridge summary

The Australia-United States Free Trade Agreement (AUSFTA), in effect since 2005, is nearing its completion, set for January 2023, which will mark the end of tariff and quota limitations for Australian beef exports to the US. This agreement has progressively increased the beef export quota from 378,214 tonnes to an unlimited amount. The removal of these restrictions has significantly impacted the Australian beef industry by eliminating market distortions caused by quotas and allowing for more market-driven decisions. The end of the transition in 2023 will further enhance Australia's competitive edge in the US market, particularly against competitors like Brazil that face quota and tariff challenges. This dynamic shift towards a more open and competitive market structure has been a key factor in the Australian beef industry's success in the US, highlighting the importance of free trade agreements in optimizing market access and opportunities for exporters.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The Australia United States Free Trade Agreement - AUSFTA - is in its last year of transition to an unlimited United States beef market. The AUSFTA came into force on January 1, 2005. For the Australian beef industry the agreement included an 18-year transition from a tightly-controlled beef import quota market of 378,214 tonnes to one unlimited by tariffs or quota restrictions. 2022 is year 18 of that agreement with a tariff-free quota level for Australian beef of 448,214 tonnes, which is 70,000 tonnes higher than in 2005. On January 1, 2023, the transition arrangements will have been completed and the US market will offer unlimited access for Australian beef. For any processor/exporter that has been operating in the US market for a few decades, this is a world away from the 1970s, 1980s and 1990s when US beef quota access had such a major influence on beef processing in this country. Quotas distort markets because they distort market signals. In years past, where production of ...

Source: Farm Online National