The ABSF Explained: Market Access

Market Access is one of the 24 priorities of the Australian Beef Sustainability Framework.

Market access is one of the four priorities under the theme of Economic Resilience reflecting the twin notions that for a beef business to be sustainable it must be profitable and Australia exports more than 70% of its beef production.

The Australian beef sector is active in many markets with high levels of regulation in the form of non-tariff barriers, meaning our processors and exporters supply a range of products against tight specifications. From the highest value animals and cuts to a large range of co-products, industry’s sustainability depends on finding the highest returning margin market.

Preferential or Free Trade Agreements (FTAs) provide access to a market beyond what is granted via the World Trade Organisation (WTO). While these negotiated agreements have significantly reduced the tariff and quota barriers Australia faces in export markets, in some cases a preferential trade agreement may still retain a reduced or transitional trade barrier.

Increasingly, ongoing access to key markets will depend upon industry’s ability to maintain customer trust through data-driven demonstration of sustainability credentials.

The Australian Beef Sustainability Framework (ABSF) provides a consistent measurement of industry performance to support the communication of successes, while helping to identify opportunities to invest and improve.

The Data

The costs of technical or non-tariff trade barriers (NTBs), such as import restrictions, labelling, failure to grant export clearance, or unnecessary sanitary rules can impose significant delays and additional costs on Australian beef exports.

In 2022, NTBs were estimated by Meat & Livestock Australia (MLA) to cost the industry $1.695b.

Alleviation of NTBs is critical in improving international competitiveness. The extension to, and harmonisation of, shelf-life for chilled and frozen beef in a number of Middle East destinations is an example of the benefits of removing an NTB impact.

MLA estimates 90.3% of the dollar value of Australian beef and live cattle exports was covered by a preferential trade agreement in 2022, a figure which is yet to reflect the new beef trade flows under the Australia-United Kingdom FTA.

Snapshot of Activities

While the percentage of beef exports covered by an FTA is more than 90%, challenges remain in the global trading system as a result of geopolitical tensions and protectionist sentiment in some markets. Future multilateral trade reform via the WTO appears remote, meaning high-quality bilateral FTAs are a critical element of industry’s market competitiveness and diversification strategy. The A-UK FTA, which came into effect on 31 May 2023, will deliver a significant increase in tariff-free (albeit quota constrained) beef access in year one. This will transition to tariff-, quota- and safeguard-free trade over a 15-year period.

The heightened spread of animal disease around the world, and within the borders of our near neighbours, highlights the importance of robust biosecurity measures and livestock traceability systems to maintain access to markets.