The Joint Standing Committee on Treaties is discussing the UAE CEPA, with Chris Young from the NFF emphasizing its importance in expanding Australian agricultural exports. The agreement opens a $2 billion market and eliminates a 5% tariff on goods. The NFF also outlines broader concerns related to animal welfare and encourages ratification by Parliament while advocating for free trade amid global challenges.
The Joint Standing Committee on Treaties is convening a public hearing today regarding the UAE Comprehensive Economic Partnership Agreement (CEPA). Chris Young, General Manager of Economics and Trade at the National Farmers’ Federation (NFF), will present his opening remarks concerning the implications of the CEPA for Australia’s agricultural sector. Young highlights the vital role of international trade in Australia’s agriculture, with 2022-23 agricultural exports reaching $80 billion, where over 70% of production is exported, primarily to countries with free trade agreements (FTAs).
The CEPA with the UAE is significant as it opens a $2 billion annual market for Australian exports, notably canola, sheep meat, and beef. While tariff reductions appear modest, Young asserts that this agreement enhances Australia’s extensive network of trade partnerships, promoting diversification and access to the Middle East and North Africa markets. He emphasizes the importance of the removal of the existing 5% tariff for nearly all goods as a positive development.
The NFF’s submission addresses broader aspects of the CEPA, urging that goods and services access remain the primary focus in future FTAs. They have praised the Investment Cooperation in Food and Agriculture Memorandum of Understanding and proposed improvements regarding the communication of sustainable agriculture initiatives. Concerns were also raised about the Animal Welfare Article’s development process and its implications for future agreements.
Young recommends that Parliament quickly ratify the CEPA, appreciating the tireless work of government and negotiators. Additionally, he stresses the urgency of finalizing a comprehensive deal with the Gulf Cooperation Council (GCC). In a broader context, he notes that geopolitical pressures threaten the stability that has favored Australia’s agricultural sector, underscoring the need to advocate for free trade and combat protectionism in the face of global challenges.
The UAE Comprehensive Economic Partnership Agreement (CEPA) is part of Australia’s broader strategy to enhance international trade, with a specific focus on agricultural exports. Australia has established multiple FTAs to boost market access for its products, and the CEPA represents a $2 billion opportunity with potential net benefits for its agricultural sector. The agreement includes provisions on goods access, sustainable practices, and investment in agriculture, reflecting the interplay between trade and global agricultural dynamics.
In summary, the UAE CEPA is poised to strengthen Australia’s agricultural export market by eliminating tariffs and expanding access to a lucrative market. The NFF supports swift ratification while highlighting areas that require further attention, such as animal welfare and sustainable agriculture. The ongoing challenges in global trade necessitate that Australia remains proactive in promoting free trade principles to ensure the long-term viability and competitiveness of its agricultural sector.
Original Source: www.nationaltribune.com.au
