News

Australia's transition to unlimited beef access to the US

Fresh Whole Beef
Frozen Bone-In Beef
United States
Australia
Published Mar 11, 2022

Tridge summary

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.

Original content

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 grinding meat in Australia was forecast to exceed quota access to the US, it put a considerable value on receiving a quota allocation each year. Allocation was based on performance in previous years so to maximise your return on the quota, the incentive was to use the quota so you would get your allocation the following year. That 'use it or lose it' approach was to some extent ...
By clicking “Accept Cookies,” I agree to provide cookies for statistical and personalized preference purposes. To learn more about our cookies, please read our Privacy Policy.