Last week the United States imposed tariffs on almost all imports to the US at a minimum rate of 10%. This 10% tariff figure has been applied to Australian exports to the US. The impact of this decision on Queensland farmers and Australian agriculture is not yet clear.
This is a disappointing outcome for Australian farmers who have been committed to a mutually beneficial trading relationship under the Australia-US Free Trade Agreement (AUSFTA) for the past 20 years.
In this time, Australian imports of US food and agricultural products have grown to around $2.5 billion AUD annually. Our primary producers also import approximately $400 million worth of farm machinery from the US each year, as well as significant amounts of crop science, genetic, agricultural innovation and insurance products.
As global markets react to these sweeping tariff announcements it is important that Australian leaders maintain a calm and measured approach to trade talks going forward.
The Federal Government and Opposition have stood firm in defence of Australia’s science-based biosecurity framework, which was a grievance aired by US President Donald Trump who referred to Australia’s policies regarding beef exported from the US during his tariff announcements.
It is important to remember that this strong biosecurity framework is a key competitive advantage for us and is part of what makes Australia’s agricultural products desired around the world. Australia has worked hard to build a reputation based on quality, and farmers will continue to work hard to ensure Australian high quality, sustainable produced food, fibre and foliage will continue to be highly sought after in global markets.
It is too early to tell exactly how these tariffs will impact Australian farmers. Ultimately the flow on affect to our primary producers will depend somewhat on the response of American consumers, how other major trading partners respond and exactly how the increased tariff rates are going to be applied on specific agricultural products.
What we do know is that our agricultural industries are experienced on the export front, with many having already experienced and managed trade quotas and other barriers in recent years. Australian farmers are adaptative to evolving market conditions and will continue to seek out opportunities to remain competitive in the global market.
The Federal Government has an important role to play in expanding and protecting Australia’s market access and the agriculture sector has welcomed a recent $50 million commitment to help the sectors most impacted by these tariffs diversify their exports.
As the world continues to react to this new trade regime, it is essential that this issue does not become a political football on the domestic front in the lead up to the Federal election. It is important that we continue a bipartisan approach when it comes to trade. QFF and our members will continue to further understand the situation as it unfolds and will continue to work with the government to support industry through all available avenues.