Prime Minister Anthony Albanese on Thursday was more circumspect than his ministers, saying Australia had not been singled out by China and added he was optimistic about the beef industries prospects in new markets.
“This is an announcement that is across the board,” Albanese said.
“Australian beef is in my view, proudly as the Prime Minister, the best in the world. Our products are in great demand right around the world and we expect to continue.”
China imported 2.9 million tonnes of beef in 2024. Australian exports comprised 8pc, while 80pc of beef imported into China came from South America.
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Australian farmers fear that red meat powerhouse Brazil could move to flood the Chinese market with beef as soon as possible in order to grab all the market share under the quota, leaving nations such as Australia to cop higher tariffs in months to come.
The new regime follows a 12-month investigation by China, which found that rising imports had undermined local producers. This means the action is permitted under World Trade Organisation rules, which sanction so-called safeguard measures to protect domestic industry from surging imports.
The Australian Meat Industry Council said it was “extremely disappointed” and warned the measures could slash its beef exports to China by about a third from recent levels, hitting trade worth more than $1 billion.
“This decision will have a severe impact on trade flows to China over the duration of the measures’ enforcement,” said chief executive officer Tim Ryan. “Imports of Australian beef are not a cause of damage to the domestic beef industry in China.”
The council anticipates exports of Australian beef into China could fall by about one third as a result of the quota.
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Australia shipped 266,000 tonnes of beef to the Chinese market in the 12 months to the end of November, according to the industry council’s figures. However, demand fluctuates significantly.
Ryan Ryan said once the 55 per cent tariff is applied, “it is unlikely that commercial beef trade to China will be viable and exports will be redirected to alternative markets until the new quota year”.
In 2020, China imposed $20 billion of trade sanctions as an act of political retribution against the Morrison government with bans on barley, wine, lobster, timber, major beef exporters, timber and cotton.
It cited labelling and health certificate requirements as reasons for the beef bans, and claimed biosecurity issues were the reason for the lobster, cotton, barley and timber restrictions.
The restrictions came in response to then-prime minister Scott Morrison’s push for an independent coronavirus inquiry.
More to come.
With Bloomberg
