Add Category
Australia has signed its first free trade agreement with a Middle Eastern nation, the United Arab Emirates (UAE), in a major deal that will boost profits in our largest vegetable export market and with one of our rapidly growing red meat trade partners.
Trade Minister Don Farrell said the agreement would provide "real benefits for Australian farmers and food producers", with $50 million a year in estimated tariff savings for the nation's food and agriculture exports.
Michael Coote, chief executive of horticultural industry group AUSVEG, said it would help vegetable growers increase exports to the Middle East.
"The UAE has been a major key long-term trading partner for our industry," he said.
"We send over 40,000 tonnes of vegetables via export to the UAE each year — it's our largest export market by volume.
"That includes about 33,000 tonnes of carrots, 4,200 tonnes of onions and nearly 2,000 tonnes of potatoes."
Australia sends about 33,000 tonnes of carrots each year to the UAE. (ABC North Coast: Renata Gombac)
Profit for producers
Mr Coote said significant trade agreements benefited Australian growers, who could begin scale up their production to meet international demand.
"This is now an open market for Australian vegetable exporters to supply, which is what we were really hoping for with this deal," he said.
"We've spent a lot of time and effort, both as an industry and individual vegetable exporters, in developing the UAE market, and now that is solidified with this trade deal we shouldn't have any impediments in both maintaining and growing that market.
"We actually export vegetables to nearly 50 different international markets, and the UAE just happens to be the largest, which is why we are particularly welcoming of the governments efforts to get this trade deal done and get it done quickly."
Trade Minister Don Farrell and his UAE counterpart Thani bin Ahmed Al Zeyoudi. (Supplied: DFAT)
Australian Meat Industry Council (AMIC) chief executive Patrick Hutchinson said eliminating tariffs on red meat put the industry in a strong position for continued growth in the region.
"We see great opportunities across the board within the market, especially around sheep meat — but also high-value beef and veal," he said.
"What we've seen this year in Abu Dhabi and Dubai already, certainly on lamb, we're [exporting more than we were last year]. On mutton across those markets, certainly in Dubai, we're well above where we were this time last year and also in beef across both of those markets.
"And 33 tonnes of goat meat have gone into Abu Dhabi, which has never happened before."
Mr Hutchinson said nearby countries, such as Egypt, Kuwait and Qatar, had shown increasing interest in Australian red meat, with Saudi Arabia increasing Australian lamb imports by "50 per cent year on year".
"This government and successive governments have looked at trying to get a Gulf Cooperative Council (GCC) one-stop-shop free trade agreement — that's just not on the books," he said.
"What this shows is that we can have trade agreements with countries within the region, a strong commitment between countries, and it can be a stepping stone for us to look at further individual opportunities within the region."
AMIC says premium meat cuts — lamb, Angus beef and Wagyu — are on trend in the Middle East. (Supplied: MLA)
Animal welfare improvements
Australian Alliance for Animals policy director Jed Goodfellow said the deal also marked a global precedent as the first time a Middle Eastern nation had recognised animal welfare in an international trade agreement.
The Comprehensive Economic Partnership Agreement (CEPA) encourages cooperation on animal welfare, including a firm commitment that both countries will continue to improve their animal welfare protection.
"This is something the Australian government can be really proud of — it provides a great example of the way Australia can have a positive influence on global standards of animal welfare," Dr Goodfellow said.
"It is very pleasing to see animal welfare recognised at this level and we hope to see the Australian government continue this trailblazing role for animal welfare in the negotiation of future trade agreements."
An unprecedented international trade agreement recognising animal welfare in the Middle East. (ABC Rural: Fiona Broom)
Mr Hutchinson said in addition to the benefits these styles of trade commitments brought to Australian farmers, they also encouraged education exchanges on matters such as animal welfare.
"If that's what the UAE is looking to do, to learn from us, we're always out there information sharing on better animal welfare outcomes," he said.
"We work with industry associations and with governments around the world on these sorts of areas, but also for the betterment of trade and rural areas all over the world.
"We lead in those areas, and we're not stopping anytime soon."