Australia condemns new import duties that could cost industry $1 billion
Prime Minister Anthony Albanese on Thursday was more cautious than his ministers, saying Australia had not been singled out by China, adding that he was optimistic about the beef industry’s prospects in new markets.
“This is an announcement that concerns everyone,” Albanese said.
“As Prime Minister I think Australian beef is the best in the world. Our products are in great demand around the world and we hope to continue.”
China imported 2.9 million tons of beef in 2024. While it accounts for 8 percent of Australian exports, 80 percent of beef imported to China came from South America.
Loading
Australian farmers fear red meat powerhouse Brazil may seek to flood the Chinese market with beef as soon as possible to capture all market share under quota, leaving countries such as Australia to deal with higher tariffs in the coming months.
The new regime follows a 12-month investigation by China, which found increased imports were hurting local producers. This means the action is permitted under World Trade Organization rules, which approve so-called safeguards to protect domestic industry from increased imports.
The Australian Meat Industry Council said it was “extremely disappointed” and warned the measures could cut beef exports to China by about a third from recent levels, damaging more than $1 billion worth of trade.
“This decision will have a significant impact on trade flows to China for the period the measures come into force,” Chief Executive Tim Ryan said. “Australian beef imports are not a cause for harm to the domestic beef industry in China.”
Loading
Australia shipped 266,000 tonnes of beef to the Chinese market in the 12 months to the end of November, industry council figures show. But demand fluctuates significantly.
Ryan said that once the 55 percent tariff is implemented, “it is unlikely that commercial beef trade to China will be resumed and exports will be diverted to alternative markets until the new quota year.”
Feeder concentrator Cattle Australia accepted the Australian Meat Industry Council’s estimate of $1 billion in export losses to China and said the quota system would restrict access to safe meat products.
Chairman Garry Edwards said China’s restrictions violated the spirit of the free trade agreement with Australia and demanded that the decision be explained.
“Australia has a long-standing relationship with China as a reliable source of high quality and safe beef and we are deeply disappointed by this decision, which we believe is completely unwarranted and at odds with our shared free trade agreement sentiment,” Edwards said.
“While China has the right to impose safeguards under certain circumstances, we need more detailed information and discussions to understand why this decision was made.”
In 2020, China imposed $20 billion in trade sanctions, banning barley, wine, lobster, timber, major beef exporters, timber and cotton in an act of political retaliation against the Morrison government.
Loading
He cited labeling and health certification requirements as the reason for beef bans, and claimed biosecurity issues were the reason for lobster, cotton, barley and timber restrictions.
The restrictions came in response to pressure from then-prime minister Scott Morrison for an independent coronavirus investigation.
More to come.
