It will allow new red meat export opportunities for Australian beef, goat meat and sheep meat with all tariffs being eliminated within five years. Red Meat Advisory Council independent chair Don Mackay said PAFTA provides an exciting new opportunity in the Latin American meat market.
“The forecast is for Peruvian beef consumption to triple by 2020 and sheep meat consumption to increase by 20 percent by 2025,” said Mackay. “This, paired with the tariff reduction to zero on all red meat products via PAFTA, means that it is a new market with emerging potential.”
“This is a welcomed gain on the tariff elimination schedule that Peru was offering Australia in the yet to be ratified Trans Pacific Partnership. We thank minister for Trade, Tourism and Investment the honourable Steven Ciobo MP and the team of officials for their work in expanding the range of global markets on offer for Australian red meat.”
Current beef tariffs of 11 – 17 per cent will be eliminated either on entry into force (EIF) of the agreement or within five years; the 9 per cent tariff on sheep meat and goat meat being eliminated on EIF; tariff applicable to live animal exports and edible offals bound at 0 per cent and the elimination of tariffs for further processed meat products either on EIF or within five years. Mackay said that dialogue is already underway between Australian and Peruvian government authorities to establish the required import protocols for Australian red meat.
“To date there has been no red meat trade between Australia and Peru due to a lack of import protocols. With the conclusion of PAFTA negotiations and anticipated establishment of protocols, our industry is ideally placed to assist Peru with its demand for imported red meat. From an industry perspective, we will be in a position to respond to potential inquiries from the Peruvian retail and food service sectors,” Mackay added.
PAFTA is the first step in securing closer economic relations with the Pacific Alliance group of countries that include Chile, Colombia, Mexico and Peru.