THE Trans Pacific Partnership (TPP) and the free trade agreement with China (ChAFTA) have dominated the headlines in terms of trade announcements in Australia in the past 12 months.
However, a trade specialist says the grains industry cannot afford to ignore the Regional Comprehensive Economic Partnership (RCEP) which involves many of Australia’s major grain trading partners.
Cheryl Kalisch Gordon, manager of trade and market access with GrainGrowers, has been in Perth this week for the 12th round of RCEP negotiations.
“The RCEP talks are of tremendous importance for the Australian grains industry.”
At the talks Australia joins other RCEP nations including China, India, Japan, South Korea, New Zealand and the ASEAN group of nations from across south-east Asia.
“The countries involved in RCEP account for 65pc of total Australian grain exports,” Dr Kalisch Gordon said.
“Eight of our top ten wheat importers, including all of the top five, are all at the table, so it is very important for us.”
She said while Australia already has trade agreements in place with most RCEP nations, it was important to try and minimise non-tariff costs.
“We are not likely to see large tariff reductions as a result of this deal, perhaps something with India in the pulse sector is possible, but what it does is provide a chance to reduce operational costs.”
“We are pushing for reform of several technical market access issues, primarily sanitary and phytosanitary requirements.”
She said one measure that could be looked at was uniform testing of grain to provide greater certainty in the export of Australian grain.
“Our aim is to introduce systematic elements into the RCEP agreement which provide clarity and certainty of import requirements and processes across the RCEP trading region.”
“For example, we hope it will minimise the issue of different testing results for the grain as it leaves Australia and then when it arrives at its destination.”
“We’d ideally like to see it easier for all to do business.”
Dr Kalisch Gordon said both the RCEP and the TPP had advantages for the Australian grains industry.
“If the TPP goes ahead, we need to be in it because it involves trade partners like Japan and Vietnam and also some of our major competitors in the US and Canada.”
“With the RCEP, we are the key grain exporting nation in the group and already have very important markets. This is an opportunity to shore up relationships and streamline processes.”
Dr Kalisch Gordon said it was important Australia locked in trade deals with key partners with a host of competitors, such as low cost producers in the Black Sea region, snapping at our heels trying to claim market share.
“We can’t rely solely on our freight advantage into south-east Asia, we’ve seen competitors move grain here cost effectively this season and while sea freight rates will go up again, the long term picture is that there will be more efficient sea freighting systems in place.”
“These trade deals can help secure future markets for our industry.”
