Today the Joint Standing Committee on Treaties is holding a public hearing on the UAE CEPA today. The below is the opening statement by National Farmers' Federation General Manager of Economics and Trade, Chris Young who will appear at noon today.
Thank you for the opportunity to appear today.
The success of agriculture in Australia is intrinsically linked to international trade. In 2022-23, agricultural exports reached $80 billion, with more than 70% of total produce exported, with 80% of that exported to countries that are covered by free trade agreements (FTAs).
Since 2000, we've signed 18 FTAs, and the United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement (CEPA) is an important addition to the list. The UAE represents an approximately $2 billion per year market, with canola, sheep meat and beef being our principal exports.
While the tariff reduction in and of themselves may be relatively modest, the deal will be an important contributor to Australian agriculture's web of trade deals, efforts in geographical and trade partner diversification, and trade advancement into the important middle east and North Africa region.
On goods access we strongly welcome the removal of the existing 5% tariff schedule for nearly all products.
Beyond this, the NFF submission provides our comments on some of the broader aspects of the CEPA. While we have stated that goods and services access should be the primary focus of FTA negotiations, it is clear that contemporary deals will continue to include additional aspects.
As outlined in our submission, we welcomed the Investment Cooperation in Food and Agriculture MoU, suggested improvements to how the Sustainable Agriculture and Food Systems Chapter was communicated, and raised concerns around the development process for the Animal Welfare Article and the precedent it sets for future deals.
Our submission has made recommendations to the committee as to how we think these issues could be addressed. That said, we believe the CEPA should be ratified by parliament as soon as possible, and we thank the Government and negotiating officials for their work in securing this deal. We similarly encourage swift action be undertaken to now secure a meaningful deal with the broader GCC.
Finally, If I may make one broader comment beyond this CEPA deal. The geopolitical, institutional, and monetary stability which has served our sector very well, are under pressure.
As a deregulated sector, exposed to global markets, our producers have consistently demonstrated their production nous when given the opportunity to trade and compete as freely as possible on open markets. Hence It is imperative that against these global challenges, Australia continues to promote the benefits of free trade to the broader community and fend off any creeping protectionist tendencies.
