104
Breaking down the barriers of non-tariff measures
With increased global trade volatility, now is the time to intensify efforts to address the growing burden of non- tariff measures on the export interests of our country’s farmers. But resolving them is a complex process requiring sustained strategic effort.
By Dr Jared Greenville
exist. Countries are placing heavier requirements on imported goods to protect local biosecurity, im- prove environmental credentials, and ensure con- sumer safety. NTMs impose higher costs for Australian agricul- tural exporters by restricting products entering the country unless they satisfy specific requirements, such as licensing requirements and product label- ling requirements, amongst others. However, some of these measures are needed to underpin government and consumer confidence in trade – for example we need to ensure that imported food is safe to eat and free from biosecurity threats. But even if there are good reasons for specific NTMs, questions need to be asked around whether the outcomes sought can be achieved with lower compliance costs.
Average bilateral agricultural tariffs have steadily declined since 1995 (even accounting for the current ‘American First’ policies), driven by sustained govern- ment initiatives to reduce trade barriers through both bilateral and multilateral free trade agreements. However, more recently, the number of non-tariff measures (NTMs) applied to Australian agriculture has risen ninefold, according to UN Trade and De- velopment. Innovation in traceability systems and other on- farm technologies have already provided an avenue to combat the rise in NTMs by extending access to new and existing markets as well as increasing pro- ductivity for exported commodities. However, there are still concerns that, over time, countries are using these to create new forms of barriers to trade, replacing the tariffs that used to
Powered by FlippingBook