A NEW Free Trade Agreement between Australia and the United Arab Emirates represents a pivotal development in strengthening Australia’s economic and trade ties in the Middle East region, an important and growing market for Australian red meat.

The new FTA signed on Tuesday, but not yet ratified, is Australia’s first with a nation in the Middle East region.

“This is a very good deal for Australian farmers and livestock producers, including beef and sheep producers, with estimated tariff savings of $50 million each year for our food and agricultural exports alone,” Trade Minister Don Farrell said.

The removal of red meat tariffs under the agreement marks a significant achievement for Australia’s red meat industry, offering greater access to one of the most vital markets for Australian beef, lamb and goat meat, the Australian Meat Industry Council said in a statement.

For the calendar year to date, Australia’s beef exports to the UAE region have reached 9300t, sheepmeat exports over the same period have reached 17,600t, and goatmeat, 33t.

The FTA and its outcomes also set a strong precedent for future trade negotiations across the Gulf Cooperation Council (GCC) region. By removing tariffs on Australian red meat products from entry into force, this agreement enhances the industry’s competitiveness and positions Australian exporters to capitalise on the UAE’s demand for premium, high-quality protein, an AMIC statement said.

Chief executive Patrick Hutchinson said the FTA with the UAE delivered elimination of tariffs on Australian red meat, and put Australia’s red meat industry in a strong position for continued growth.

Mr Hutchinson noted that the FTA builds on recent technical market access gains in the Middle East region achieved through industry-led research initiatives which capitalise on Australia’s world-best hygienic meat production systems for extended meat shelf-life. These improvements have been accepted by the UAE and a number of other regional markets in recent years and are aimed at reducing food waste and increasing the commercial viability of the trade by sea freight.

AMIC had worked closely with industry and Australian Government partners on these initiatives, to enhance the presence of Australia’s meat products in the UAE and wider GCC region, Mr Hutchinson said.

“AMIC encourages timely ratification and entry into force of the agreement to take advantage of new opportunities for Australian producers to engage more deeply with the UAE’s meat import sector,” he said.

“As the Australian government continues to negotiate further FTAs across the GCC, AMIC is committed to ensuring that the industry remains well-positioned to benefit from improved market access and supply international consumers with Australian meat and meat products.”

With the inclusion of the UAE, Australia now has 19 Free Trade Agreements – the key ones being with Japan, Korea Indonesia, New Zealand, United Kingdom, United States, China, Singapore and Thailand.

Source: AMIC