Key highlights:<\/b><\/p>\n
\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The Trans Pacific Partnership delivers tariff reductions and improved market access for Australian agricultural products. With TPP countries representing a third of Australian agricultural exports, these benefits are potentially significant.<\/p>\n
\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Protein – this tariff reduction will remove the competitive advantage Australian beef was to enjoy as a result of the recently negotiated Japan-Australia Economic Partnership Agreement (JAEPA).<\/p>\n
\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Grains, cereals and sugar – Japan will create a new 6,000 tonne quota for Australian rice, growing to 8,400 tonnes after 12 years. Around one third of Australia\u2019s sugar exports ($510 million of $1.5 billion) were destined for TPP countries in 2014. The agreement will grant and additional 65,000 tonnes to Australia\u2019s US quota upfront, as well as 23% of future additional WTO quota allocations.<\/p>\n
\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Dairy – Japan, one of Australia\u2019s most important dairy export markets, will lower tariffs and introduce new quotas for certain dairy products.<\/p>\n
\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The full details of the TPP are yet to be released, and hence a comprehensive assessment of the costs and benefits to Australia is not currently possible. At this stage, there is little clarity around any concessions made.<\/p>\n
Phin Ziebell, Nab Agribusiness Economist<\/p>\n