Eradicating pesky trade barrier boosts UAE red meat market

Last week Federal Agriculture and Water Resources Minister Barnaby Joyce revealed the accepted shelf life of Australian vacuum-packed beef and sheep meat products had been extended, to enhance trade to the UAE market.

Mr Joyce praised the breakthrough saying the restricted shelf-life was estimated to have cost industry up to $60 million per year.

Small Business Minister and NSW Nationals Riverina MP Michael McCormack said it was also a positive outcome for farmers in his local region which was home to highly-regarded beef and sheep abattoirs.

The National Farmers’ Federation (NFF) joined with red meat industry leaders to welcome removal of the pesky UAE trade barrier, with sheepmeat shelf life extended from 70 days to 90 days and beef changed from 90 days to 120 days.

NFF president Fiona Simson said the news last week was an example of the value of pursuing solutions to non-tariff trade barriers.

Ms Simson said the Middle East was a “crucial market” for Australian beef and sheepmeat with combined exports to the UAE alone valued at $295.8m per annum.

“The breaking down of non-tariff trade barriers is acutely important for all agricultural exports with seemingly ‘simple’ barriers often costing sectors significantly as a result of limited or no market access,” she said.

“The positive outcome for beef and sheepmeat demonstrates the value of industry and government working together to achieve tangible results for Australian farmers, food processors and manufacturers.”

Sheepmeat Council of Australia President Jeff Murray said the UAE was one of the largest markets for Australian sheepmeat and any increase in UAE market share was welcomed.

Mr Murray said liberalisation of restrictive sheepmeat shelf life regulations in the UAE was a great outcome for Australian sheep producers and testament to the close working relationship between government and industry.

“Going forward, industry will continue to work in partnership with government in an effort to reduce other technical barriers to trade within the Middle East and North Africa region for the benefit of both consumers and sheep producers,” he said.

Cattle Council of Australia president Howard Smith said the government’s efforts in providing commercial and scientific rigour to successfully make the case for extended shelf life was welcomed.

“A multi-pronged approach to trade, including the negotiation of free trade agreements and the reduction of non-tariff barriers, such as shelf life parameters, is required to maintain current market share,” he said.

“Specifically, the shelf life extension for beef from 90 days to 120 days will open new opportunities for producers to cater for this growing market.”

Mr Joyce said the Coalition government had worked with industry, particularly Meat and Livestock Australia, to advocate for an increased shelf life for meat by providing the commercial and scientific justification to satisfy the UAE.

“This is another in a long line of market access wins for Australia,” he said.

“The UAE is a sophisticated importer and re-exporter of food products and a food distribution hub for other markets in the region.

“Shelf life remains a trade barrier in other Middle East countries, with a total cost to industry of up to $86m each year.

“We will use the UAE’s leadership and reputation to push for change in shelf life in other countries in the region.”

Mr McCormack said Australia produced some of the world's best agricultural goods, which has helped maintain a significant share of valuable import markets like the UAE, and ensured stronger farm-gate returns for Australian farmers.

The NFF has identified non-tariff trade barriers, including those contained within significant free trade deals like the Trans Pacific Partnership, as an area of ongoing frustration - but also potential opportunity to enhance farm viability - which demands greater government attention and investment.

Mr Joyce said the Coalition government had invested $30.8m in the Agricultural Competitiveness White Paper - released in 2015 - to improve access to premium markets.

That work included five new agricultural counsellors - including one in Saudi Arabia - to give Australian producers better access to premium overseas markets, tackle technical barriers to trade and expand into emerging markets while maintaining and strengthening Australia’s position in existing markets.

Mr Joyce’s Department website highlights various market access achievements since the Coalition first came to government in 2013, by cutting technical requirements imposed by other countries like; labelling; pest and disease process requirements; and residue limits inconsistent with Australia’s production systems and international standards or obligations under international trade rules.

Some of the listed breakthroughs include; improved access for lentils exported to Bangladesh and wheat to Iran, by removing the mandatory fumigation requirement; and chickpeas to Pakistan through reduced mandatory fumigation rates.

The website also lists many other farm trade gains like improved market access for feeder and slaughter cattle to China in July 2015, “after an import health protocol replaced an old protocol negotiated in 1998 under which no animals have been shipped”.