On 30 November 2021, the Taiwanese Government announced a temporary reduction of tariffs on beef and wheat. This will take effect from 1 December 2021 until 31 March 2022.
- The tariff on beef will be reduced by 50% to NT$5/kg (approximately A$0.25/kg).
- The tariff on wheat will be reduced to zero (down from 6.5%).
These measures are intended to address food price inflation in Taiwan.
Implications for Australian exporters
These tariff reductions will temporarily reduce the cost of exporting beef and wheat to Taiwan. This will make imported products, including products from Australia, more competitive against locally produced beef and wheat.
Taiwan wheat and beef market snapshot
Taiwan is an important market for Australian food and beverage exporters. Prices for Australian agricultural products in Taiwan are often higher than the average price in Australia's other export markets. This includes beef and wheat.
Taiwan sources most imported beef and wheat from the US. Australia is the second largest supplier of each commodity. In 2020, the US had a 75% share of Taiwan's beef imports. It had a 93% share of Taiwan's wheat imports.
Taiwan is Australia's sixth largest export market for beef. In 2020-21, Australia exported $217.6 million of beef to Taiwan. This was 12% lower than the previous three-year average. The fall in Australian beef exports to Taiwan was mainly because of herd rebuilding, which reduced Australian beef production.
Taiwan is Australia's 15th largest wheat market. In 2020–21, Australia exported $52.4 million of wheat to Taiwan. This was 29% higher than the previous three-year average. The increase in wheat exports to Taiwan was mainly due to increased wheat production in Australia.
The following estimates are based on average trade volumes for the December to March period (2016-2020). It is estimated these tariff reductions over the four-month period could provide approximate tariff savings of:
- $2 million for beef
- $1 million for wheat.
Tariffs have been reduced on the following HS codes
- Beef and beef products: 10.10, 0201.10.90, 0201.20.10, 0201.20.20, 0201.20.90, 0201.30.10, 0201.30.20, 0201.30.90, 0202.10.10, 0202.10.90, 0202.20.10, 0202.20.20, 0202.20.90, 0202.30.10, 0202.30.20, 0202.30.90
- Wheat:19.00, 1001.99.00.
Figure 1: Australian beef and wheat exports to Taiwan
Source: Australian Bureau of Statistics, catalogue 9920.0
Figure 2: Taiwanese imports of beef and wheat by country
Source: ITC Trademap
Resources
Micor has import requirements for wheat exports to Taiwan. Micor Meat has import requirements for beef exports to Taiwan.
