Agricultural trade - Review

This is a quarterly review of significant issues in agricultural trade. Progress on agricultural trade issues changes on a daily basis. The information below provides a snapshot of recent progress to January 2012. The next update is due in May 2012.

Contents

World Trade Organization (WTO) Doha Round: agriculture negotiations
WTO dispute settlement actions
Free Trade Agreement (FTA) negotiations
Canada
Latin America
North Asia
South and South East Asia and the Pacific
Thailand
United States
Other

World Trade Organization (WTO) Doha Round: agriculture negotiations

The conclusion of the Doha Round remains the key trade priority of the Australian Government. A multilateral trade deal offers the greatest prospective benefits for our exporters. Successful completion of the Doha Round would create a new wave of global trade liberalisation and strengthen the integrity of the global trading rules.

Despite renewed efforts to progress the Round in late 2010 and 2011, negotiations remain at an impasse. At the 8^th WTO Ministerial Conference held in December 2011 in Geneva Ministers considered ways of breaking this impasse. In his address to the plenary session of the conference the Australian Trade Minister, the Hon Dr Craig Emerson, MP noted that ten years of a business-as-usual approach to the negotiations had failed and advocated that members consider a new pathway for moving the negotiations forward. Dr Emerson endorsed the WTO General Council statement of 30 November 2011 which embraced the notion of different pathways; provided a focus on components of the Doha Declaration where agreement can be reached on a provisional or definitive basis earlier than full conclusion of the single undertaking; and respects the development component of the Doha Round. Dr Emerson noted that Australia as chair of the Cairns Group would continue to advocate agricultural trade liberalisation in all its forms.

Australia in consultation with other members and its Cairns Group partners is working to develop these ideas and bring forward new initiatives for moving the round forward.

Finalising the negotiations would provide significant benefits to Australian agricultural producers. Based on the current draft negotiating text, Australia’s major competitors – such as the European Union (EU) and the United States (US) – would have to cut their trade distorting support measures by up to 70 per cent. As well, developed countries will have to reduce their tariffs by an average minimum of 54 per cent.

Beyond agriculture, there is considerable work to be completed in other areas of the Round, including non–agricultural market access, services and rules (covering fisheries subsidies, anti–dumping, countervailing measures and regional trade agreements). Within the rules negotiations, members are divided on special and differential treatment in fisheries subsidies negotiations. Some large developing countries are demanding generous provisions for subsidies for fishing activity. Australia and many others are opposed to such provisions, as they undermine the overarching objective of the fisheries subsidies negotiations: to reduce overfishing and excess capacity in fishing fleets, while considering the effects on livelihood in developing economies.

WTO dispute settlement actions

EU/US action against the Philippines on taxes on distilled spirits (DS396/DS403)

On 19 January 2010, Australia joined as a third party a dispute initiated by the EU (DS396) against the Philippines over their excise tax regime on distilled spirits - which subjected spirits produced from non-designated materials to substantially higher taxes than those made from designated materials – which the EU claimed generally favoured domestic spirits. The same Panel hearing this dispute also heard a similar claim made by the US (DS403), to which Australia was automatically a third party. Australia has an interest as an exporter of spirits to the Philippines – worth over $2 million a year. On 15 August 2011, the WTO Panel ruled in favour of the EU and the US, finding that the Philippine measure was inconsistent with the obligations of Article III:2 of the GATT 1994. In September 2011, the Philippines appealed, and the EU separately notified their decisions to appeal to the Appellate Body issued its report on certain issues of law and legal interpretation developed by the panel. On 21 December 2011, largely upholding the original decision. The Appellate Body upheld the panel’s finding that the Philippines had acted inconsistently with Article III:2 of the GATT 1994. The Philippines appealed, and the Appellate Body issued its report on 21 December 2011, largely upholding the original decision. The Appellate Body found that as the distilled spirits made from non-designated raw materials were “directly competitive and substitutable” from those made from designated materials, the dissimilar taxation “afforded protection to Philippine production”.

US action against European Communities (EC) poultry conditions (DS389)

In January 2009, the US requested consultations with the EC over prohibited conditions for poultry products, specifically poultry treated with chlorine to prevent contamination. In the past, Australia has unsuccessfully sought EC acceptance for the use of sanitary washes for meat and game meat exported to the EC. Australia joined the consultations as a third party. A Panel was established in November 2009; however, its members have not yet been composed. The US is continuing to seek Codex endorsement of the acceptability of sanitary washes, thus creating a relevant international standard on the issue that could support their claim in later stages of the dispute.

Canadian action against US mandatory country of origin labelling (DS384/386)

On 19 November 2009, Australia joined as a third party a dispute initiated by Canada and Mexico against the US over its mandatory country of origin labelling laws (mCOOL). Canada and Mexico claim that the mCOOL laws, which entered into force on 16 March 2009, impose unreasonably onerous traceability and labelling requirements that have had a significant negative effect on trade in the live animal and meat sectors. As a major exporter of some covered commodities to the US, particularly beef, Australia has significant commercial and systemic interests in the dispute. The Panel issued its report on 18 November 2011. It found that the mCOOL measures violated the Technical Barriers to Trade Agreement by according less favourable treatment to imported products than to like domestic products. Also, though the Panel found that it was legitimate for a WTO Member to implement measures to provide consumers with information on country of origin, the Panel assessed that the US measure failed to fulfil its objective. The parties have until 23 March 2012 to appeal.

Mexico action against the US on dolphin safe labelling (DS381)

Australia lodged its third party submission on 28 April 2010 in Mexico’s dispute with the US over their ‘dolphin–safe’ labelling laws. Mexico claimed that its tuna and tuna products were harvested in a manner consistent with international standards. The US asserted that Mexican tuna fishing practices do not comply with US specifications for ‘dolphin–safe’ harvesting methods, and therefore cannot be labelled as such. Australia has an interest in the dispute given the emerging issue of environmental labelling. The Panel issued its final report on 15 September 2011. While the Panel did not agree with Mexico in relation to whether the US provisions discriminated against foreign tuna products, the Panel did find that the US measures where more trade restrictive than necessary to properly inform consumers and to contribute to the protection of dolphins. The US notified of its decision to appeal the panel report on 20 January 2012.

New Zealand action against Australia’s quarantine measures for apples (DS367)

On 29 November 2010 the WTO Appellate Body upheld three of the Panel’s four findings in the Australia—New Zealand Apples dispute. The Panel confirmed that Australia’s measures with respect to fire blight, European canker and apple leaf curling midge were not based on sufficient scientific evidence, and therefore were inconsistent with articles 2.2, 5.1 and 5.2 of the WTO Sanitary Phytosanitary Agreement. On 30 November 2010 in a joint statement by the Minister for Agriculture, Forestry and Fisheries, Senator Ludwig, and the Minister for Trade, Dr Emerson, the Government announced that it had accepted the decision of the Appellate Body and would undertake a review of the import policy.

DAFF completed its review of the import conditions for New Zealand apples and a draft report of this review was released on 4 May 2011. The draft report concluded that New Zealand’s well established commercial practices for producing export fruit manages the risks associated with fire blight, European canker and apple leaf curling midge to a high standard. The draft report recommended that apples produced with these practices be permitted access to Australia, subject to verification by AQIS that certain standard orchard and packinghouse practices had been followed. The report was open for public comment until 4 July 2011. Changes were made to the final report to address stakeholder comments. Trade has now commenced and consignments are being examined to verify that they meet Australia’s import requirements.

Philippines challenges action against Australia’s quarantine arrangements (DS271/DS270)

The Philippines’ first WTO challenge against Australia’s quarantine measures affecting the importation of fresh pineapples was initiated in 2002 and remains at the initial stage of bilateral consultations. On 5 December 2007, Australian officials held discussions with the Philippines aimed at reaching a mutually agreed solution. No further discussions have been held.

The Philippines has not advanced its second WTO challenge to Australia’s quarantine regime, concerning Certain Measures Affecting the Importation of Fresh Fruit and Vegetables, since 2003 when it successfully requested a Panel be established. The Philippines has not subsequently requested that the WTO compose a Panel to hear the dispute (which is the next step in the dispute process).

Free Trade Agreement (FTA) negotiations

ASEAN, Australia and New Zealand Free Trade Area (AANZFTA)

AANZFTA entered into force on 1 January 2010 for eight of the twelve countries that signed the Agreement, namely Australia, New Zealand, Brunei, Burma, Malaysia, the Philippines, Singapore and Vietnam. The Agreement has since come into force for all countries: Thailand in March 2010, Cambodia and Laos in March 2011, and most recently Indonesia on 10 January 2012.

China

Australia has held seventeen negotiating rounds with China since April 2005, the last of which was in November 2011 in Beijing. No progress in market access negotiations has been made since a ‘stocktake’ of positions and sensitivities was made in the sixteenth round. It is expected that Australia will host the eighteenth round in the first half of 2012.

Gulf Cooperation Council (GCC)

Four rounds of the Australia—GCC FTA have been held to date. The last round (31 May to 2 June 2009) made progress 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. The GCC announced in January 2010 that all of its current FTA negotiations, including with Australia, were on hold.

India

On 12 May 2011 negotiations were launched to conclude a Comprehensive Economic Cooperation Agreement (CECA) between Australia and India. The Department of Foreign Affairs and Trade has sought submissions on the potential outcomes and impacts of a CECA and has commenced consultations with Australian industries and state governments. This includes a series of consultations around Australia. DFAT officials are expected to visit Brisbane, Darwin and Sydney in the first part of 2012. The first round of discussions (with India on 28–29 July 2011) established the broad architecture of the agreement and procedures for the negotiation. The second round of negotiations were in Canberra on 17–18 November 2011 provided an opportunity to discuss Goods, Legal, and Services and Investment draft texts. Intersessional work and further exchanges of information will assist in further development of the draft texts.

Indonesia

On 2 November 2010 the Indonesian President, Susilo Bambang Yudhoyono, and Prime Minister Gillard agreed to commence negotiation of an Indonesia Australia Comprehensive Economic Partnership Agreement (IA–CEPA). The comprehensive economic partnership will cover economic cooperation, trade, and investment issues. Preliminary discussions between officials are being held in advance of formal negotiations. Timing of the first round of negotiations is yet to be determined.

Japan

Negotiations on the Australia–Japan Free Trade Agreement commenced in April 2007 following the conclusion of a joint government study on the feasibility of a bilateral FTA. The 13th round of negotiations was held in Canberra from 20–22 December 2011, having been postponed due to the impacts of the earthquake and tsunami in Japan. The 14th round of negotiations is scheduled for the week of 13 February 2012 in Tokyo.

Malaysia

Negotiations on an FTA with Malaysia have been underway since April 2005 but were stalled for a period prior to the conclusion of AANZFTA negotiations. The eleventh round was held in Malaysia 2011. On 3 March 2011, Prime Minister Gillard and Malaysian Prime Minister Najib agreed that Australia and Malaysia will conclude MAFTA within 12 months of their meeting. In January 2012 Ministers reaffirmed their commitment to conclude negotiations by March 2012.

Republic of Korea

The political debate in Korea over the ratification and implementation of Korea’s Free Trade Agreement with the United States (KORUS) has delayed progress on the Australia–Korea FTA negotiations.

Concluding the Korea FTA negotiations remains one of the Government’s top trade priorities and it is working to bring the FTA with Korea to a successful conclusion as soon as possible. Five negotiating rounds and a number of intersessional meetings have been held with Korea since May 2009. The most recent intersessional discussion was held in October 2011.

Trans–Pacific Partnership Agreement

On 20 November 2008, Australia announced that it would participate in negotiations for a Trans–Pacific Partnership Agreement (TPP). The agreement will expand on the current Trans–Pacific Strategic Economic Partnership Agreement between Brunei, Darussalam, Chile, New Zealand and Singapore, which entered into force in 2006. The United States, Peru, Malaysia and Vietnam also participate in the TPP negotiations. The Australian Government is pursuing a TPP outcome that eliminates or at least substantially reduces barriers to trade and investment. It is intended that the TPP be a living agreement that remains relevant to emerging issues and allows for membership expansion. While expanded membership of the TPP is desirable, those seeking membership would need to demonstrate commitment to early and comprehensive liberalisation so as to maintain the momentum that has been generated by existing TPP parties. The 11th round of Trans–Pacific Partnership negotiations will be held in Melbourne from 1–9 March 2012.

Pacific Agreement on Closer Economic Relations (PACER) Plus

The commencement of negotiations for a new Pacific regional trade agreement known as PACER Plus was agreed by the Pacific Island Forum Leaders at their meeting in Cairns in August 2009. The most recent meeting of officials was in Palau in March 2011. Officials discussed the priority negotiating issues of rules of origin, development assistance, trade facilitation and regional labour mobility. The next meeting will be held in Brisbane in March 2012.

Canada

Changes to cheese compositional standards and milk protein access

Canada has implemented changes to cheese compositional standards that came into effect from 1 December 2008. The new standards discriminate against Australia’s dairy exports to Canada, particularly milk protein concentrates, skim milk powders and whey protein concentrates, as they mandate an increased use of fluid milk in cheese production over powdered products. Australia is also concerned about Canada’s decision to make domestic milk proteins for cheese processing available at reduced prices under the milk class 4M, which would appear to favour domestic producers of milk proteins over imported product. The government is continuing to raise Australia’s concerns with the Canadian Government.

Latin America

Chile

Australia signed a Free Trade Agreement with Chile in March 2009 that included a commitment to develop a Memorandum of Understanding on Chile’s recognition of Australia’s beef grading system (which was signed in April 2010). Since then beef exports to Chile have increased significantly. Three veterinary officials from the Chilean quarantine service visited Australia in September 2010 to observe Australia’s meat grading regime in practice. In December 2010 two senior quarantine officials visited Australia for discussions on quarantine and biosecurity policy issues as well as priority market access requests.

Mexico

A broad bilateral Memorandum of Understanding on Cooperation in Agriculture was signed with Mexico in April 2010. It creates a valuable reference for the further development of the working relationship between the Australian and Mexican agriculture sectors and both countries are presently exploring measures that would benefit from mutual cooperation.

North Asia

China

Meat access

On 5 November 2008, China advised that Australian meat and meat products exported from non–integrated establishments would not be permitted entry without new inspection and approval. Australia is working to achieve access to China for integrated and non–integrated establishments that have applied to export to China. China undertook an audit of export establishments in late 2010 and in January 2012 released its final audit report. The findings of the report will be discussed with Australian industry.

Kangaroo meat access

Australia continues to work cooperatively with Chinese authorities to gain new market access for kangaroo meat into China, following a protocol being signed between the two countries in June 2009. Since 2009, there have been a number of representations and high level meetings with key Chinese officials, including at the Sanitary and Phytosanitary High Level Dialogue, held in China in June 2011. Most recently, Minister Ludwig met with his Chinese counterpart in December 2011 to reiterate Australia’s assurances that the kangaroo industry operates in a humane and sustainable manner and to high food standards.

Chinese authorities inspected kangaroo meat establishments in late 2010. The final audit report was provided to DAFF in mid January 2012. DAFF will continue to work with the Australian kangaroo industry to secure market access.

Genetics

Australia and China have been engaged in discussions to revise some long–standing bovine, ovine, caprine and canine genetics export protocols to help facilitate trade. In October 2010, DAFF wrote to China to propose revised health conditions for the export of sheep and goat semen and embryos to China. In June 2011 at the High Level Dialogue between Australia and China it was agreed in principle to revise the current ovine and caprine genetic protocols, signed in 1989. Updated health conditions for ovine and caprine genetic material were sent to Chinese authorities in September 2011 for their consideration. Protocols for export of bovine semen and canine genetic materials were finalised during Minister Ludwig’s visit in December 2011.

Horticulture – Summerfruit and Cherries

Australia provided a technical market access submission for Australian cherries to China in August 2003 and for Australian summerfruit (nectarines, peaches, plums, apricots) in April 2004. Access for summerfruit is now Australia’s top horticultural market access priority for China, followed by cherries. Australia is awaiting the draft pest risk analysis (PRA) report for Australian summerfruit. In June and November 2011 Australia accepted China’s draft PRA reports for cherries on the understanding that this would not affect the timeline for the summerfruit PRA. China made a verification visit to Australian summerfruit and cherry production areas in December 2011. China provided a revised PRA report for Australian cherries on 18 January 2012 and is expected to finalise and publish the final PRA report in the near future and to develop a protocol for trade to be commenced in the 2011/12 season as previously committed.

Canola

In September 2009, China implemented emergency measures after the detection of blackleg fungus in canola consignments from Australia. China agreed to trade facilitating transitional arrangements for the 2009/2010 growing season, although no trade occurred during this time. The new conditions require canola exports to be tested and declared free of the fungus. This has effectively closed the trade given the fungus’s widespread occurrence, even though its incidence on canola seed is very low. Australia is seeking a tolerance level for blackleg fungus in canola for processing in recognition of the low risk of this disease establishing in China as a result of this trade and is continuing to work with industry and China to restore trade.

Taiwan

Carrot and plum access

Trade in fresh carrots ceased in March 2009 due to the listing of burrowing nematode as a prohibited species in Taiwan’s quarantine regulations for most states in Australia. A revised protocol for carrots became effective on 16 January 2012 and trade is expected to resume later in 2012. Market access for Australian plums to Taiwan was also restored in January 2012 and trade can commence immediately with cold in–transit conditions in place.

Japan

Horticulture market access

Japan is progressing Australia’s top market access request for table grapes. A verification trial in Australia, supervised by Japanese officials, is proposed for early 2012. Australia’s next priority market access request is pumpkins from Riverland. Bilateral plant quarantine technical discussions were held in Japan in October 2011.

Maximum residue limits for agricultural chemical residues

In consultation with the Australian Pesticides and Veterinary Medicines Authority, DAFF continues to work closely with the Japanese Government to assist Japan in its review of provisional maximum residue limits (MRLs) in food and the establishment of additional MRLs in animal feed. Since the review began in 2006, Australia has provided over 240 technical submissions in support of Australia’s MRLs. Australian meat, dairy, grain, fodder and horticulture industries are contributing funding to complete this work. Japan’s proposed final MRLs are closely monitored by DAFF.

Import conditions for race horses

An animal health protocol for the temporary direct importation of horses from Japan is now in place. This follows the completion of the import risk analysis and a policy determination to permit the importation of horses from Japan subject to quarantine conditions.

Temporary suspension of poultry and poultry products

A diagnosis of low pathogenicity notifiable avian influenza was confirmed in ducks in Victoria in late January 2012. In response to this outbreak Japan implemented a temporary suspension on imports of live birds including poultry, eggs, avian meat and avian meat products from Australia. The suspension does not apply to highly processed products containing some avian ingredients including processed pet food, canned products, ready–to–eat poultry products, ice–cream, confectionary, cookies and cake mix. The department continues to work closely with industry and the Department of Foreign Affairs and Trade to restore trade access to affected markets as soon as possible.

Republic of Korea

Foot and mouth disease outbreak in Republic of Korea

In late 2010 and early 2011 the Republic of Korea suffered a reoccurrence of foot and mouth disease. To control the disease more than 3 million pigs, cattle and other susceptible animals were slaughtered and a nation–wide vaccination program was implemented. Korea has advised that the outbreak has now been controlled. The last case was reported in April 2011. During the outbreak, Australia offered to provide technical assistance to Korea.

Horticulture market access

Improved market access for citrus to the Republic of Korea, allowing cold disinfestations to be carried out at 3 degrees Celsius, was achieved on 25 October 2010. The improved conditions provide more flexible export arrangements and higher quality fruit to Korea. Australia’s top priority market access request is for table grapes. At bilateral plant quarantine technical discussions held in August 2011, Korea confirmed its goal to finalise the draft assessment pest risk analysis so that some trade may occur during the 2012 table grape season. A visit by Korean authorities to Australian table grape vineyards to verify Australia’s production and pest management practices is proposed for February 2012. Australia’s next priority is market access for mainland cherries.

South and South East Asia and the Pacific

India

Improved market access for sheep and goat meat and bovine semen to India

In October and November 2010, submissions were sent to India seeking improved health conditions for the export of bovine semen and sheep and goat meat from Australia. India’s comments on both submissions are currently under consideration.

Trial of in–transit cold disinfestation of fruit to India

In October 2010 a consignment of citrus was sent to India to demonstrate in transit cold disinfestation of fruit fly host commodities. Indian authorities inspected the shipment on arrival in Chennai. India has requested technical assistance from Australia to further support the demonstrated benefits of in transit cold disinfestation. Australia will continue to work with India on this issue. India has published draft import conditions that will permit the use of in–transit cold disinfestation treatment for Australian citrus exports to India.

Indonesia

Live Cattle and Boxed Beef

Indonesia has set import levels for 2012 at 283 000 head for live cattle and 34 000 tonnes for boxed beef (from all sources). DAFF understands that Indonesian agencies will continue to review price fluctuations and supply requirements throughout the year, as has occurred in previous years, and potentially revise import volumes as necessary.

From 1 January 2012, the responsibility for issuing import permits for live cattle transferred from the Indonesian Ministry of Agriculture to the Ministry of Trade. Permits have been issued to Indonesian importers for both live cattle (for the first quarter of 2012) and boxed beef (for the first half of 2012). Under the new arrangements, permit numbers are now required on health certificates for boxed beef and the import permits for live cattle specify the destination abattoirs.

Since 2010, the Indonesian Government has enforced a 350 kg per animal weight limit for imported live cattle.

Regulations for offal imports

In November 2010In November 2010Indonesia has proposed extending its current partial offal import restrictions to a ban on all offal imports (excluding tongues and tails). These extended restrictions were originally notified by Indonesia to the World Trade Organization as part of a revised version of the regulation governing the importation and distribution of carcasses and/or meat from overseas. Australia submitted a coordinated government and industry response to the WTO on 17 January 2011 raising concerns with the proposed regulations. Indonesia is yet to respond and the extended restrictions are not yet being enforced.

Indonesia is a key market for Australian offal with trade valued at $30 million in 2010–11.

Market access for mangosteen

Indonesia submitted a valid market access request for fresh mangosteen fruit in February 2008. DAFF Biosecurity formally announced the commencement of its assessment of Indonesia’s market access request on 4 June 2010. The assessment is being conducted as a non–regulated analysis of existing policy. This includes a requirement for Plant Biosecurity officials to conduct an in–country visit to verify production practices and pest risk management measures for Indonesia’s export mangosteen. A visit originally scheduled for October–November 2010 was deferred at the request of the Indonesian authorities, due to a poor harvest in Indonesia. The visit subsequently took place in September 2011. Outcomes of the visit were discussed at the 16th meeting of the Australia–Indonesia Working Group on Agriculture, Food and Forestry Cooperation held in October 2011.

Australia–Indonesia Working Group on Agriculture, Food and Forestry Cooperation (WGAFFC)

The WGAFFC is the main officials’ level forum to discuss trade, investment and cooperation between Australia and Indonesia in agriculture, food and forestry. The working group consists of taskforces on livestock and animal products, crops and plant products, and forestry. The taskforce discussions are open to state and territory government and industry participants. The WGAFFC also includes a government–to–government dialogue on quarantine and SPS–related matters. The most recent WGAFFC meeting was held 26–29 October 2011 in Yogyakarta, Indonesia. The next meeting is scheduled to be held in Australia in 2012.

Malaysia

Malaysia–Australia Agricultural Cooperation Working Group (MAACWG)

The MAACWG is an important forum for progressing agricultural trade and market access issues between Australia and Malaysia. The sixth MAACWG meeting was held in Hobart in March 2011. The program included meetings of sub–working groups on livestock, crops, fisheries and forestry and timber. The seventh MAACWG meeting is expected to take place in Malaysia in early 2012.

Grading, Packaging and Labelling Regulations

Malaysia is introducing new grading, packaging and labelling regulations of agricultural produce (GPL Regulations) and has advised that the GPL Regulations will be enforced in stages. As of 1 October 2011, Malaysian importers of agricultural produce would need to apply for GPL compliance certificates for each consignment – website. 

Australian exporters will need to comply with:

• the GPL labelling requirements from 1 October 2011.
• the GPL packaging requirements from 1 January 2012.
• the GPL grading requirements from 1 July 2012.

From 1 July 2012 the new GPL Regulations will require that produce with a corresponding Malaysian Standard which is exported from Australia and other nations to Malaysia will need to meet the grading requirements in the Malaysian Standard. For produce exported without a corresponding Malaysian standard, Australian industry will be able to use a grading standard developed by the industry. The exporters would then be required to provide a ‘supplier declaration’ prior to export.

Philippines

Australia–Philippines Agriculture Forum (APAF)

The inaugural meeting of the APAF was held 28 April 2011 in Manila, the Philippines. This government–to–government forum provides a mechanism to engage bilaterally on agriculture–related trade, cooperation, quarantine and SPS matters. Discussions at the first meeting covered global and regional issues such as the implications of climate change for agriculture and fisheries, food security, the WTO Doha Round, and an update on the implementation of the ASEAN–Australia–New Zealand Free Trade Agreement. Market access issues and cooperation were also discussed. Australia will host the next meeting of the Forum in the second half of 2012.

Thailand

Thailand–Australia free trade agreement (TAFTA) meetings 2010

The TAFTA Expert Group on Sanitary and Phytosanitary Measures and Food Standards, and the Thailand–Australia Joint Working Group on Agriculture (the JWG) met in Thailand in August 2010. The SPS meeting discussed market access for Australian citrus fruit and Thai mangosteen, procedures applying in instances of non–compliance with quarantine requirements, and a review of proposals for technical cooperation. The JWG meeting included discussion on administration of TAFTA safeguard mechanisms and tariff rate quotas, a dialogue on drought and organic agriculture, and a range of proposals for future cooperation. In addition to DAFF and DFAT, Queensland and Victorian state government representatives attended. An intersessional meeting of the JWG was held in Bangkok in early May. The next TAFTA Expert Group on Sanitary and Phytosanitary Measures and Food standards, and the JWG are expected to be held in Australia in 2012.

Pest risk analysis for plant products

Thailand is undertaking a process to review its import conditions for all horticultural imports. The review impacts upon imports from a number of exporters across the full range of commodities to Thailand, including horticulture products from Australia, Argentina, Spain, Canada, Chile, South Africa and New Zealand. To maintain interim access for currently traded commodities, Australia has agreed to import conditions and has arranged for an audit of Australia’s production and export certification systems. A number of these audits have already been conducted and new protocols for citrus and table grapes have been agreed. A December 2011 audit that was scheduled for cherries and summerfruit was postponed at the request of the peak industry bodies. As a result, Thailand suspended imports of Australian cherries and summerfruit from 1 January 2012, until an audit can occur. The audit is a key part of the approval process for the cherry and summerfruit protocols for Thailand. DAFF will continue to work cooperatively with the Thai Department of Agriculture seeking to achieve a satisfactory resolution to regain market access.

United States

Australia–United States Free Trade Agreement (AUSFTA)

The Australian Government continues to engage with the US for improved access for Australia’s agricultural exports including through committee 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 a treatment for mangoes, although the US irradiation operational measures and its administrative rulemaking process will mean exports are unlikely to commence for some time. The impact of the US rule–making process on delaying Australian access to the US market remains of particular concern, and was the subject of ongoing bilateral representations. Meetings of the AUSFTA Agriculture Committee, the SPS Committee and the Standing Technical Working Group are planned to be held in Canberra during the period 1–2 March 2012.

Food Safety

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. DAFF is monitoring progress of the FPP and the implementation of new food safety legislation to assess any impact on Australia’s agricultural trade with the US. The Food Safety Modernisation Act was signed into force on 4 January 2011, although the approximately 60 subordinate regulations for its implementation are likely to take around two years to complete. The Australian Government is exploring the impact of this legislation on Australia’s food exports to the US.

Other

Sanitary and Phytosanitary measures: Private and commercial standards

Private and commercial standards are buyer’s or commercial specifications that are neither official, nor government endorsed, and are ostensibly voluntary. However, as private standards are now considered by some to be the de facto market access standards for western markets, particularly in Europe, private standards are being discussed in a number of international forums, including the WTO.

Australia maintains that private standards are an important part of the global agri–food value chain; nevertheless, there is some concern about the impact of private and commercial standards on producers in developing countries, mainly because of the cost involved in obtaining certification. To respond to this, Australia considers that standards holders (buyers using the standards) and their representing organisations should take steps to encourage:

• mutual recognition of standards by private standard holders
• cost reduction in the areas of compliance and certification
• greater transparency and consultation.

A number of countries are seeking to pursue work on private standards in the WTO’s SPS Committee, under the presumption that private standards fall under the mandate of the SPS Agreement. Australia and like–minded countries consider that private standards are not covered by the SPS Agreement. However, discussion in the SPS Committee can usefully increase the level of understanding on the issue, especially in differentiating between private standards and official standards. Members have often called for closer collaboration between the SPS Committee, the international standard setting bodies (ISSBs) and private standard holders to resolve outstanding issues. In consideration of this, the SPS Committee is working through five agreed actions: developing a working definition of private standards, closer liaison with the ISSBs, improved awareness of developments in other WTO fora that may be of relevance to SPS related matters, increased communication with entities involved with SPS–related private standards to build and maintaining awareness of issues and the development of informative materials advocating importance of international SPS standards.

Animal Welfare

On 21 October 2011 the Government announced reforms to livestock trade. More details can be found at Action on Live Exports