FTA will reduce tariffs on Australian produce

Australia’s recently announced Free Trade Agreement (FTA) with Japan has been welcomed by AUSVEG, the industry body representing vegetable and potato growers.

According to AUSVEG, the FTA will have positive implications for the Australian horticulture industry, with a range of fruit and vegetable commodities flagged for tariff elimination.

“Australian horticulture has the potential for significant trade growth in Japan, so to see reduced tariffs for products like carrots, asparagus and cabbage will mean that it will be easier for Australian growers to get these products onto the shelves of Japanese supermarkets,” said AUSVEG spokesperson Hugh Gurney.

“This agreement will further assist the Australian vegetable industry to establish trade in Asia, with market access for a greater range of vegetables the next priority for industry in order to take advantage of lower tariffs.”

Once the FTA is in effect, the current 3% tariff on products like carrot, asparagus and cabbage will be eliminated. In 2012-13, more than $50 million worth of asparagus was exported from Australia to Japan.

“When you’re talking about over $50 million, a 3% reduction in costs for accessing Japanese consumers equates to a significant amount of money that an Australian asparagus grower can choose to reinvest into their business,” Gurney said.

Other horticultural products such as canned tomatoes and vegetable juice have been earmarked to have their current tariffs phased out over a five-year period should the FTA be approved by both Japanese and Australian parliaments.