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Free trade could boost beef profits by $850m
17 Mar 2003
Meat & Livestock Australia has released a report entitled "Global Beef Liberalisation" which claims the removal of all trade barriers would boost the Australian beef industry's annual profits by over $850 million.
The report was produced by the Centre for International Economics for the Five Nations Beef Group, which comprises Australia, New Zealand, the US, Canada and Mexico. The report's authors compared the benefits of various proposals for international trade reform, and concluded Australia's beef industry would fare better if the Cairns Group or US suggestions were implemented rather than those put forward by the European Union.
The Cairns Group suggested that tariffs in developed countries be cut to 25 per cent or less, tariff quotas be expanded by adding 20 per cent of domestic consumption, and export subsidies and domestic support be abandoned. The EU proposed tariffs be cut by 36 per cent, domestic support by 55 per cent, expenditure on export refunds by 45 per cent, and no expansion in tariff rate quotas.
MLA said the study found free trade would add $800 million-plus to Australia's cattle industry, which would mean a 28 per cent increase in producer profits. Although no country is aiming for free trade as the outcome of the Doha round of WTO talks, the Cairns Group proposals would get close, delivering an annual benefit of about $650 million to the Australian beef industry, MLA said.
Stock Journal, 13/3/03.
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