Agricultural Trade - Review of Developments

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Agricultural Trade - Review of Developments

Progress on Agricultural trade issues changes on a daily basis. The information below only provides a snapshot as at 7 August 2008. This page is updated four times a year.

WTO Doha Round Negotiations

On 21 July 2008, Ministers from 30-40 countries convened in Geneva for a WTO Ministerial meeting in an attempt to reach agreement on the remaining differences in the agriculture and non-agricultural market access (NAMA) draft texts.

Despite intensive efforts, the talks broke-down as Ministers failed to reach agreement on the scope of a mechanism (called the ‘special safeguard mechanism’) designed to counter surges of food imports in developing countries.

The failed Ministerial Meeting does not mean the end of the Doha Round. However, it is uncertain when negotiations on agriculture and NAMA will recommence. Events such as the US Presidential election in November 2008, the current French presidency of the EU and India’s General Elections in May 2009 may mean that the Round is not finalised in the immediate future.

Australia will attempt to seek early re-engagement by WTO Members to find a way forward in the negotiations and will continue to work towards securing a comprehensive and ambitious outcome from the Doha Round, including a Doha deal that delivers genuine reform to global agricultural trade.

WTO Dispute Settlement Actions

NZ WTO action against Australia’s quarantine measures for apples:  On 31 August 2007, NZ initiated a WTO dispute over Australia’s quarantine measures contained in the final Import Risk Analysis for the Importation of NZ apples. NZ lodged its first written submission in the dispute on 20 June 2008 and Australia lodged its rebuttal submission on 18 July (available on the DFAT website). The first WTO Panel hearing is scheduled for 2-3 September 2008. A Panel ruling is not expected until the second half of 2009. The US, EC, Japan, Chile, Taiwan and Pakistan are third parties to the dispute. The Australian Government will continue to consult regularly with stakeholders, including apple and pear industry representatives, during the course of the dispute. Australia intends to robustly defend Australia’s science-based measures.

WTO action against US Farm Subsidies and Export Credits:  A WTO dispute panel was created on 17 December 2007 in relation to US agricultural subsidy programs and export credit guarantees for agricultural products following the requests by Canada (8 January 2007) and Brazil (11 July 2007) for dispute consultations with the US. Australia has joined the dispute as a third party on the basis of legal and commercial interests. Other third parties are Argentina, Chile, China, Chinese Taipei, the EC, India, Japan, Mexico, NZ, Nicaragua, South Africa and Thailand.

WTO action against India’s wine and spirits regime:  On 6 March 2007 the US requested dispute consultations with India in relation to additional duties and taxes applied to India's imports of US wines and distilled products. The report of the Panel was issued on 9 June 2008 following the panel hearing on 17-19 September 2007 at which Australia made a brief oral statement. The Panel found that the US had failed to establish that the additional duties and charges on imported alcoholic liquor were in excess of those being charged on domestic like products. Other third parties are the EC, Japan and Vietnam.

Philippines WTO challenges to Australia’s quarantine arrangements:  The Philippines has not advanced its WTO challenge to Australia’s quarantine regime (although it remains a ‘live’ dispute – initiated in 2003).  In particular, it has not requested that the WTO compose a panel to hear its challenge, which is the next step in the dispute process, but is free to do so at any time.  The Philippines’ second WTO dispute against Australia’s quarantine measures affecting the importation of fresh pineapples remains at the initial stage of bilateral consultations (initiated late 2002).  On 5 December 2007, DFAT, in consultation with DAFF, commenced discussions with the Philippines aimed at reaching a mutually agreed solution to the WTO dispute on fresh pineapples. 

WTO action against US cotton subsidies:  In 2002 Brazil requested a WTO dispute settlement panel in relation to allegedly prohibited and actionable subsidies provided to US users and exporters of upland cotton. The panel report circulated on 8 September 2004 found that US agricultural export credit guarantees were in violation of WTO export subsidy rules, that the US had granted several prohibited subsidies to cotton and that US subsidy programs for cotton had caused serious prejudice to Brazil by suppressing the world price for cotton. On appeal, the Appellate Body largely upheld the panel’s findings.

On 18 December 2007 the compliance panel found the US had failed to remove the adverse effects of the marketing loan and counter cyclical payment subsidies that had been found to be causing significant price suppression. The compliance panel also found that the US was continuing to provide prohibited export subsidies through the GSM 102 export credit guarantee programme. The US subsequently appealed the decision to the Appellate Body. On 2 June 2008 the Appellate Body upheld the key findings of the original compliance panel report, confirming that the US had failed to bring its export credit guarantee programme into conformity with relevant WTO provisions and that the marketing loan and counter-cyclical payments is causing significant price suppression. By continuing to make these payments, the US had failed to take appropriate steps to remove their adverse effects or withdraw the subsidy.

Australia participated in the original and compliance proceedings in the dispute as a third party along with Argentina, Benin, Canada, Chad, China, Chinese Taipei, the EC, India, New Zealand, Pakistan, Paraguay, Venezuela, Japan and Thailand.

Free Trade Agreement Negotiations

China:  The eleventh round of negotiations on the Australia-China FTA was held in Beijing from 16 to 20 June 2008. This was the first round since the Prime Minister agreed with his Chinese counterpart in April 2008 on the “unfreezing” of the negotiations, and since the Minister for Trade agreed with China’s Commerce Minister to implement a more intensive work program.

China tabled a revised tariff offer at the round. The revised offer contained some improvements on industrial products. We have agreed with China that the two sides will intensify discussions in coming months on priority product areas, particularly agriculture, where Australia considers China’s offer needs to be improved. The two sides have agreed in principle to hold the next round of negotiations in the first half of September 2008.

Malaysia:  Negotiations on an FTA with Malaysia have been underway since April 2005.  Four full rounds of negotiations have been held with the most recent being in July 2006. No negotiations were held in 2007 and the Australian and Malaysian Governments have agreed that negotiations should remain on hold until the conclusion of the ASEAN-Australia-New Zealand FTA (expected in late 2008).

Gulf Cooperation Council:  Two rounds of the Australia-GCC FTA have been held to date, in July/August and November 2007. A third round is proposed for October 2008. Useful progress was made in a number of important areas across the agreement, including services and investment, SPS and rules of origin, although a goods offer is yet to be made. 

Australia, NZ and the Association of South East Asian Nations:  Negotiations have been underway since 30 November 2004. These negotiations intensified in 2007 and 2008 as Australia, NZ and ASEAN countries have attempted to bring the negotiations to a conclusion.  Significant progress has been made across all areas. Text is currently being finalised for most chapters and discussion of tariff elimination/reduction commitments is well advanced. Substantive negotiations are now expected to be completed by September 2008. The final round of negotiations was held in Singapore from 21-25 July 2008.

Japan:  The sixth round of Australia Japan FTA negotiations were held on 28th July – 1 August 2008 in Tokyo. The agriculture market access focus in this round was on wheat and barley as well as outstanding beef and dairy issues from the fifth round. Progress on agriculture market access continues to be slow and difficult as Japan has from the outset pursued exclusion of sensitive agriculture products (principally beef, dairy, wheat, sugar and rice) from liberalisation consideration under the agreement. However, exclusion of these products would provide limited commercial benefit for the Australian agriculture industry. The previous five rounds of negotiations made some progress on non-agriculture market access and reached agreement on tariff modalities (including exchange of tariff offers). But Japan’s offer has excluded approximately 67 per cent of the value of Australia’s agricultural exports currently facing tariff and other restrictions; and a shift in this position appears limited prior to Japan’s lower house elections, which could be held any time until September 2009.

Republic of Korea:  The joint private sector study into the feasibility of a bilateral FTA was presented to both governments on 17 April 2008. A roundtable was held on 22 April in Seoul where officials agreed to hold preparatory talks later in the year, prior to announcing formal negotiations. It is anticipated that the first round of the talks will take place in September 2008. 

Chile:  On 27 May 2008, the Hon. Simon Crean MP, Minister for Trade and his Chilean counterpart, Mr Alejandro Foxley, Minister for Foreign Affairs formally concluded the negotiation of the Australia - Chile Free Trade Agreement. The FTA delivers the most comprehensive outcome on goods and tariff reductions in any FTA that Australia has negotiated with another agricultural producing country since the Closer Economic Relations Agreement with New Zealand signed in 1983. The FTA provides for the immediate elimination of Chile’s tariffs for all meat and wine products, as well as on key dairy products which Australian industry identified as a priority. The Australian and Chilean governments are working towards the FTA entering into force on 1 January 2009. 

Mexico:  The Joint Experts Group is currently developing a report and plans to present its findings to the Australian and Mexican Ministers for Trade in the second half of 2008.  The report will include a chapter on the current economic and trade relationship, an assessment of the current agricultural trade relationship as well as identifying impediments to and opportunities for future agricultural trade.  It is also expected that the report will provide a preliminary evaluation of a possible free trade agreement between Australia and Mexico. 

India:  Australia and India are expecting to complete the joint feasibility study on the merits of an FTA between the two countries by the end of 2008. The officials-level joint study group (JSG) has met in New Delhi (17 April 2008), Melbourne (21 May 2008) and New Delhi (11-12 August) with a further meeting expected in October. DFAT is coordinating the study and is accepting public submissions. Industry consultations have also taken place in capital cities.

Indonesia:  In July 2007, Australia and Indonesia agreed to commence a joint feasibility study to examine the merits of a bilateral FTA.  The Joint Study Group developing the feasibility study met for the first time in December 2007 in Jakarta and for the second time in Canberra in April 2008.  As with the India FTA feasibility study, DFAT is coordinating the study with input from stakeholders including DAFF.

International Treaty on Plant Genetic Resources for Food and Agriculture

The International Treaty on Plant Genetic Resources for Food and Agriculture (the Treaty), negotiated under the auspices of the United Nation’s FAO, provides a legal framework for the conservation, sustainable use and international exchange of plant genetic resources for food and agriculture for global food security and sustainable agriculture.  Access to new varieties is particularly important for Australia given increasing pressure in the agriculture sector to deal with water resource issues, pests and diseases and climate variability and change.

The Second Session of the Governing Body of the Treaty was held at FAO headquarters in Rome from 29 October - 2 November 2007. At its Second Session, the Governing Body adopted a budget and program of work, and made progress on key issues such as implementation of the Funding Strategy and Farmers’ Rights. However, the Governing Body recognised that while the Treaty is operating well, it is facing serious resource constraints.

The Governing Body expressed concern over the financial situation of the Treaty.  Some parties have suggested that countries that have heavily influenced the Treaty negotiations, and wish to continue in this role, will need to consider fulfilling voluntary pledges to the Funding Strategy and the running of the Secretariat.  Australia represents the South West Pacific Region on the Bureau of the Governing Body and has provided assistance to the South West Pacific Region developing countries, through the Secretariat of the Pacific Community, to accede to and engage in Treaty activities. DAFF is currently considering the need for further support and activities in relation to plant genetic resources anf the Treaty.

US Developments

US Farm Bill 2008:  The 2008 Farm Bill became law on 22 May 2008 after the difficult process of conferencing the House and Senate versions of their draft Bills and two Presidential vetoes — each of which was overturned by majority votes in both houses of the Congress.

The Bill is a disappointing outcome.  Projected increased spending is significantly higher than the 2002 Farm Bill and existing trade-distorting programs will continue. Enacting the Bill is estimated to increase direct spending for farm support programs by over US$10 billion over 2008-2012 and will bring total spending to around US$300 billion over that period.

The Bill maintains many of the programs of the 2002 Farm Bill. It maintains, or increases, subsidies to producers of major crops while devoting more money to conservation, renewable energy, nutrition and specialty crop programs. The Bill also continues direct payments, which are distributed to some farmers regardless of the level of production, and the target price for wheat which will increase the support that will be provided to the wheat sector if prices fall below current levels.

The Government continues to voice concerns to the US Administration and Congress over a number of aspects of the 2008 Bill including the Dairy Import Assessment Tax, and sugar provisions which guarantee that domestic producers will supply at least 85 per cent of the sugar used for domestic consumption. 

Australia-United States Free Trade Agreement (AUSFTA):  The Government continues to engage with the US for improved access for Australia’s agricultural exports, including sugar and dairy products. Market access currently constrained by technical barriers is also being progressed under the sanitary and phytosanitary structures of the AUSFTA. Australia’s current priorities for access to the US are cherries, mangoes, lychees and stone fruit. Access for mainland cherries is now agreed as well as an agreed treatment for mangoes although the US administrative rulemaking process will mean exports are unlikely to commence for some time.

Wine appellations:  Representations to the US Trade Representative and the US Alcohol and Tobacco Tax and Trade Bureau (TTB) seeking to redress the discriminatory treatment of wines imported into the US bearing multi-region wine appellations have been successful. The TTB has confirmed it will be drafting a Federal Regulation to allow Australian wines imported into the US to display multi-region wine appellations, consistent with provisions for domestic US wines.

United States Food Protection Plan:  The US Food and Drug Administration (FDA) has launched a Food Protection Plan (FPP) that signals expanded authority for the FDA to increase surveillance of imported food products in the medium to long term, adding costs and additional layers of regulation to exporters such as Australia. The Department is monitoring progress of the FPP and complementary legislation prepared for the US Congress to assess any impact on Australia’s agricultural trade with the US.

Canadian Developments

Changes to cheese compositional standards:  Canada has implemented changes to cheese compositional standards that come into effect from 1 December 2008. The new standards could discriminate against Australia’s dairy exports to Canada, particularly milk protein concentrates (MPC), skim milk powders and whey protein concentrates, as they mandate an increased use of fluid milk in cheese production over powdered substitutes.

The Government continues to voice concerns that the changes are unnecessary and a means of non-tariff protectionism and to monitor and assess the effect of the implementation of the regulations by the Canadian Food Inspection Agency from December 2008.

European Developments

Russian authorities have temporarily suspended imports of meat from four Australian establishments (three kangaroo and one beef) following claims of microbial contamination. The majority of Australian meat exports to Russia remain unaffected.

The Australian Quarantine and Inspection Service (AQIS) is working closely with industry to address Russian concerns. This work has included individual investigations of the four establishments. A detailed response based on reviews and investigations has been delivered to the Russian Federal Service for Veterinary and Phytosanitary Surveillance in Moscow.

Australia’s Agriculture Counsellor based in Brussels is following this up with the Russian veterinary authorities to seek the re-instatement of the four establishments to export to Russia.

Middle East Developments

Memorandum of Understanding (MoU) in live animal trade: The Australian Government is working to finalise MoUs in the remaining Middle Eastern trading partners — namely Oman, Bahrain and Israel. Bahrain has indicated it may be willing to finalise an MoU with Australia, following consideration of newly developed contingency arrangements for the unloading of animals. For Oman, the MoU is currently awaiting Omani Ministerial agreement. We are seeking a workshop with Israel to discuss alternatives to unloading animals in the event of any health concern, following advice that earlier proposals would contravene Israeli legislation.

Live trade to Egypt: On 9 May 2008, the Minister for Agriculture, Fisheries and Forestry approved the recommencement of trade in cattle through a new ‘closed system’ facility at the Port of Ain Sokhna. Minister Burke and his Egyptian counterpart, Minister Abaza, have agreed on amendments to the MoU on the Handling and Slaughter of Australian Live Animals. A new order under the Australian Meat and Live- Stock Act 1997 is being drafted that will enable the trade to commence through the ‘closed system’ at Ain Sokhna. The resumption of trade in slaughter cattle to Egypt will be subject to a high level of scrutiny by the Australian Government and the live export industry.

Animal Welfare: On 11 February 2008, the World Society for the Protection of Animals commenced a campaign against the long distance transport of animals, with a key focus of banning the live sheep trade to the Middle East. The Australian Government continues to work with the live animal export industry and importing governments to identify and address areas of concern with animal handling and slaughter practices in key markets. Recent animal welfare projects in the Middle East and South East Asia include: education and training in animal welfare, awareness in transportation and feedlot management (targeted at people along the livestock chain in the importing country), the development of training materials in four languages as a resource in the Middle East region, facilitating improvements to government strategic planning, installing restraint boxes in abattoirs in Indonesia and repairing and replacing infrastructure to improve conditions for livestock in the Middle East and South East Asia.

South and South East Asia and the Pacific Developments

Indonesia – Regulations for offal imports:  Regulations covering the import and control of meat and meat products remain in place, restricting trade in some Australian beef offal products to Indonesia.  Australia has submitted a formal request for a food safety risk assessment to be conducted as the first step in reinstating trade in currently prohibited offal products. The Director General of Livestock Services has subsequently advised that a risk assessment will not be conducted. Following consultation with industry, the Australian Government has since followed up with comments to Indonesian Ministry of Agriculture and is awaiting a response. The Australian Government will continue these efforts in an attempt to resolve this issue.

Indonesia – Draft regulations for food safety control of plant products:  Indonesia has proposed draft regulations concerning food safety control for fresh foods plant of origin.  The draft regulations include overly burdensome requirements for pre-export testing and certification of grains, fresh fruit and vegetables for freedom from, or compliance with maximum residue levels, for various chemicals.  There are also Hazard Analysis Critical Control Point certification requirements that would be problematic to address.  Indonesia has indicated a willingness to recognise Australia’s production systems as providing an equivalent level of food safety protection as that proposed in the draft regulations. Indonesia issued a revised draft of the regulations in April 2008 and this is currently the subject of assessment by DAFF. Industry is being consulted on the revised draft prior to Australia’s response.

Philippines – Meat access:  The Philippines published a new Administrative Order for the export of meat and meat products to the Philippines on 7 January 2007. To continue to export meat and meat products to the Philippines this order requires that all countries apply for formal approval and be audited by the Philippines. AQIS has submitted the required questionnaire, formally applied for systems approval and facilitated an in-country audit of Australia's system. The Philippines has advised that imports of meat and meat products from Australia will be able to continue under the current rules and regulations while they are in the process of conducting the systems approval.

Philippines – Meat and bone meal access:  The Philippines has issued a Memorandum Order and guidelines lifting a “temporary” ban imposed in 2001 on meat and bone meal from Australia. Exporters are currently working through the registration process prior to shipments commencing.

Thailand – Australia Joint Working Group on Agriculture:  The Joint Working Group met in Canberra in August 2007. The agenda included: Thailand – Australia FTA implementation issues; a dialogue on agricultural policy, technical cooperation activities, bilateral cooperation and exchanges and a presentation by the Australian dairy industry on its interests in Thailand. A number of Australia’s concerns including transparency of TRQs administration for dairy products and administration of special agricultural safeguards will be followed up out-of-session. DAFF reported on agricultural cooperation projects with Thailand involving the department, AusAID and the Australian Centre for International Agricultural Research. The Joint Working Group is next scheduled to meet in Thailand in 2009.

Thailand - Australia Expert Group on Sanitary and Phytosanitary Measures and Food Standards:  The Sanitary and Phytosanitary Expert Group will meet in Thailand in late August 2008 to exchange information on regulatory reforms. Discussions at the 2007 meeting of the SPS Expert Group included Australia’s reforms of its import risk analysis process, Thailand’s new plant quarantine regulations, market access requests for animal and plant products, cooperation activities and updating the group’s work plan for 2007-09.

Thailand – Plant Quarantine Regulations:  New regulations for importation of prohibited and restricted plants and plant products came into force on 31 July 2007.  DAFF has been working closely with industry to meet the Thai requirements and has provided Thai authorities with the relevant technical information to minimise any impact on trade arising from the regulations.

Malaysia – Access for Australian Halal meat:  AQIS, in consultation with industry, has worked with Malaysian officials to develop a protocol for Halal slaughtering of cattle.  In March 2006, a Malaysian delegation audited five establishments against the protocol with three gaining approval, effective from 6 April 2006. Malaysia conducted an audit of eight Australian establishments during the period 31 August to 7 September 2007. All eight establishments were subsequently approved. AQIS sent a technical delegation to Malaysia in May 2008 to discuss the issue of access for independent boning rooms.

Malaysia – Tariff Rate Quotas:  Malaysia implemented TRQs on 18 agricultural tariff lines, covering dairy, pigs, pig meat, chickens, poultry meat and offal, eggs and cabbage in April 2008.  Whilst not welcome, this move is not inconsistent with Malaysia’s WTO commitments and it appears that the TRQs are being administered through Malaysia’s existing import licensing system. DAFF continues to work with industry to determine the full impacts of the TRQs on Australia’s trade interests.

Malaysia – Agricultural Cooperation Working Group:  The Malaysia-Australia Agricultural Cooperation Working Group is an important forum for progressing agricultural trade and market access issues between Australia and Malaysia. It oversees and facilitates regular and comprehensive consultation and cooperation on agriculture, fisheries, agri-food, SPS and operational quarantine matters. The next meeting of the Working Group will be held in Australia in late November 2008.

New Zealand - Hazardous Substances and New Organisms Act court ruling:  On 4 December 2007 a NZ court ruled the Import Health Standard for Australian honey imports (except those from Western Australia) was invalid, as the imports would not meet the requirements of the HSNO Act. This ruling highlighted an inconsistency between the NZ Biosecurity Act and the HSNO Act. Consequently, the NZ Government passed legislative amendments in April 2008 to resolve this inconsistency. The amended Biosecurity Act states that the Australian honey IHS will not be validated until an independent review panel has reviewed the scientific evidence in dispute in relation to that IHS. At the invitation of the NZ Ministry of Agriculture and Forestry , DAFF provided comments on the draft terms of reference for the independent review of the honey IHS on 1 August. The review is likely to result in delays in gaining market access for exports of Australian honey to NZ.

North Asia Developments

Taiwan – Plant Quarantine Requirements:  The Australian Government is continuing to make every effort to restore access following the disruption to Australia’s fruit exports to Taiwan caused by the enactment, on 1 January 2006, of Taiwan’s amended plant quarantine requirements upgrading Queensland fruit fly from precautionary to prohibited status.

Taiwan – Citrus Access:  Australia resubmitted its proposal for improved access to Taiwan for citrus (two and three degree cold disinfestation) to Taiwan’s Bureau of Animal and Plant Health Inspection and Quarantine in December 2006 following Taiwan QAC’s September 2007 meeting. Taiwan accepted Australia’s submission for cold disinfestation to be conducted at two degrees, but requested further verification of cold disinfestation treatment at three degrees. The verification trial began on 19 July and is scheduled to finish on 18 August 2008.

Taiwan – Cherries and Stonefruit Access:  Despite repeated representations by the Australian Government and a commitment by Taiwan to progress this issue as quickly as possible once the research had been submitted, access for cherries and stonefruit is yet to be re-established. In April 2008, Taiwan requested that the research presented in June 2007 be revised to allow for easier interpretation. Taiwan also advised that further verification of cold disinfestation treatment will be required before trade can recommence. Australia is pressing for timely progress on the revised submissions presented in July 2008 and will push for Taiwan to reconsider the need for further verification of cold disinfestation treatment.

Taiwan – Vegetable, Seed and Nursery Stock Access:  On 17 December 2007 Taiwan announced proposed changes to their import requirements likely to affect vegetable, seed and nursery stock exports, in particular the prohibition of carrots from Western Australia due to the burrowing nematode. In collaboration with the vegetable industry and state departments, DAFF provided a submission to Taiwan in March 2008, receiving an interim response from Taiwan in April advising that additional information was required to support recognition of pest free areas. DAFF will submit additional information to Taiwan for consideration pending the enactment of the changes.  

Japan – Horticulture Market Access:  Recent market access gains include Japan’s acceptance of Australia’s technical report of the efficacy of two and three degree treatment for citrus, with Japan amending its import protocol to include these additional treatment options on 20 September 2007. After sustained efforts by Australia, Japan agreed to a reduction in the inspection rate for fresh mangoes from five per cent to two per cent commencing October 2007. Japan is considering the outcomes of a pilot trial for a non-fumigation protocol for Tasmanian cherry exports, which could result in improved access for Tasmanian cherries to Japan in time for the next cherry export season (December 2008). Japan will consider Australia’s request for recognition of seasonal fruit fly freedom for the Greater Sunraysia area and new market access for table grapes and grapefruit following completion of the Tasmanian cherry application.

Japan's maximum residue limits for agricultural chemical residues:  DAFF, in consultation with the Australian Pesticide and Veterinary Medicines Authority, continues to work closely with the Japanese government and since 2006, 157 technical submissions have been provided in support of Australia’s maximum residue limits (MRLs). Additional submissions will be provided over the next two years. This data will assist Japan in its review of provisional MRLs in food and the establishment of additional MRLs in animal feed. Australian meat, pork, grain, dairy, horticulture and fodder industries have provided funding to complete this work.

Republic of Korea – Live Animal Exports:  Following a visit by Korea’s National Veterinary Research and Quarantine Service (NVRQS) to Australia in March 2008, the NVRQS proposed revised conditions for imports into Korea of live cattle from Australia. After consulting with industry, DAFF advised NVRQS on 9 May 2008 that the proposed conditions would limit the commercial viability of the trade and suggested modifications to the conditions for consideration by NVRQS. DAFF also proposed, as a long term measure, the development of suitable health requirements specifically for slaughter animals. NVRQS is currently considering DAFF’s response.

Republic of Korea – MoU on Animal Health and Quarantine:  A MoU concerning Co-operation on Animal Health and Quarantine Matters between AQIS and NVRQS was signed during the Minister for Agriculture, Fisheries and Forestry’s visit to Korea in April 2008.

Republic of Korea – Beef:  Revised conditions for imports of US beef into Korea were released on 26 June 2008. There were some initial uncertainties about the scope of the compulsory labelling of the age of beef cuts. Korean authorities have confirmed that this applied only to US beef. During a visit to Australia in June 2008, the President of the Korean Hanwoo Association (representing Korean cattle producers) expressed a desire to introduce regular interchanges between the Hanwoo Association and the Australian beef industry. DAFF is following up with industry.

Republic of Korea – Market Access Gains: Recent gains include an agreed import protocol for the import of Australian mangoes into Korea in 2007. However, for commercial reasons, there was no trade during the 2007 mango season. Korea has also amended its import protocol for Australian citrus to include the option of cold disinfestation at two degrees instead of only one degree. Access for Tasmanian carrots into Korea was regained on 13 November 2007, following Korea’s acceptance of Tasmania’s area freedom from the burrowing nematode. Korea has finalised the preliminary pest risk assessment for the export of Tasmanian cherries and is assessing Australia’s requests for further improvements to market access for citrus.  

Australia – China Agricultural Technical Cooperation (ATC) program: Applications are being assessed for funding for the 2008-09 round. The ATC Steering Group approved two new projects in the 2007-08 round: a project to enhance China’s capacity for processing superfine Australian wool and a benchmarking study between China’s draft forest certification scheme and the programme for the endorsement of forest certification schemes.  Earlier ATC projects covered dairy husbandry training, fine wool marketing, and livestock production education (to improve grasslands management).

Australia – China Memorandum of Understanding on Cooperation in Sanitary and Phytosanitary Matters: The high level dialogue under the SPS MoU is expected to be held in the second half of 2008, after it was postponed due to China’s resource constraints. The SPS MoU and related technical bilateral meetings are designed to provide a forum for cooperative discussion in the area of animal, plant and human health, and to pursue market access issues.

 
Acronyms

Acronym Definition Acronym Definition
AQIS Australian Quarantine and Inspection Service MoU Memorandum of Understanding
ATC Australia-China Agricultural Technical Cooperation Mofcom Ministry of Commerce
DAFF Department of Agriculture, Fisheries and Forestry NAMA Non-Agricultural Market Access
DFAT Department of Foreign Affairs and Trade NVRQS National Veterinary Research and Quarantine Service - Korea
EC European Commission NZ

New Zealand
EU European Union QAC

Quarantine Advisory Council - Taiwan
FAO United Nation's Food and Agriculture Organisation SPS Sanitary and Phytosanitary
FTA Free Trade Agreement the Treaty The International Treaty on Plant Resources for Food and Agriculture
GCC Gulf Cooperation Council TRQs Tariff Rate Quotas
HSNO Hazardous Substances and New Organisms US United States of America
IHS Import Health Standards WTO  World Trade Organization

August 2008


Last Updated: 11 Aug 2008
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