Trade Agreement with EU Sparks Concerns Among Australian Cheesemakers
The recent trade agreement between Australia and the European Union, finalized in March after nearly a decade of negotiations, has become a focal point for the Australian dairy industry. The agreement, which involves both sides reducing tariffs and expanding trade, has raised concerns among domestic cheesemakers.
One significant aspect of the deal is that Australian producers will no longer be able to use certain cheese names, such as feta, romano, and gruyere, although they have retained the right to describe their products as parmesan. Deputy Secretary for Trade and Regulation, Tina Hutchinson, noted that preserving the name 'parmesan' was a critical issue for the dairy industry during the discussions.
Despite this concession, there is unease in the sector about the removal of tariffs on European cheese, which could lead to increased competition from subsidized imports. Nationals leader Senator Matt Canavan voiced these concerns, highlighting the potential impact on local producers.
Jared Greenville, head of the Australian Bureau of Agricultural and Resource Economics and Sciences, pointed out that European subsidies for dairy farmers are relatively low, equating to $1.70 for every $100 in income. He suggested that the trade agreement could enhance transparency regarding market distortions, which affect pricing.
Beyond dairy, the trade talks also focused on red meat quotas, with industry stakeholders criticizing the additional market access for 30,600 tonnes of beef and 25,000 tonnes of sheep meat as insufficient. However, David Garner, Global Agricultural Trade Assistant Secretary, stated that the composition of the quotas, with a preference for fresh over frozen meat, was beneficial for the industry.
Agriculture Secretary Victoria Anderson emphasized the overall aim of securing the best outcomes for the agricultural sector, acknowledging the complexity of whole-of-economy agreements. The ongoing discussions highlight the sensitivity of agricultural negotiations and the challenges in balancing diverse interests.
