00:00So after about eight years of negotiating, Australia and the EU have finally struck a trade deal.
00:05About 99% of tariffs both ways get removed, so better access for Australian product into the EU,
00:12but also improved competition, I guess, for the European products in getting access to Australia.
00:18So for sectors like dairy, we could see a bit more competition on that space from EU imports of dairy
00:24products
00:24and, of course, other products coming in outside of the ag space or even some more wine from the EU.
00:31In the red meat space, a little bit of a concerning news in the sense we did get better access
00:37or improved access.
00:39The quota has been lifted to 30,000 tonne of product, but that is combined for both beef and sheep
00:46meat.
00:46Ideally, we would rather have had maybe double that or triple that for each individual type rather than all combined
00:53in one.
00:54And that 30,000 tonne is actually subject to a tariff when it goes past 55%.
01:01So there is a safeguard quota at 55% of that 30,000 or so.
01:05And then the balance of the 45% coming in after that quota's reach will be subject to a tariff
01:11on it.
01:12So not the greatest of access for red meat.
01:14That's probably the real dark cloud on this one that we could have had a much better arrangement there.
01:19Moving outside of the ag space, of course, you know, we've got improved access for some of the rare earth
01:26minerals into the EU.
01:27So making Australia a bit more of an important supplier and removing some of the EU's reliance on countries like
01:34China for access to some of those rare earths and other minerals.
01:39On the manufacturing side, I guess we'll probably see potentially a bit more access of luxury European cars into the
01:46Australian market.
01:47But now that we don't have a domestic car industry ourself, that's probably not as problematic as what it would
01:52have been a couple of decades ago.
01:54So for those with money that want to get themselves a nice BMW or something, that might be a result
02:00or perhaps even the old Lamborghini tractor.
02:03And the other thing, I guess, to consider, too, is around some labelling.
02:07So historically, some Australian producers have been utilising labelling that was really specific to a European region.
02:15I think back to the days with the wine, we used to call certain wines Bordeaux or Beaujolais.
02:21And we had to move across to naming those wines as a grape varietal, like a Cab Sauve or a
02:26Chardonnay or a Pinot Noir.
02:28Historically, we used to utilise those European names.
02:31That's going to strengthen the regulations around that with this access.
02:36So some Australian products that still use those European names, like Prosecco or some of the cheese types like Brie
02:43and, you know, kind of Camembert, French varieties that are specific to a region.
02:49Some of the Australian producers will have to relabel over time and adjust how they describe a product.
02:55That's, I guess, another factor that comes out of this trade deal.
02:59Broadly speaking, it's a bit of a win for the Australian government to be able to promote.
03:03And always better access to trade is a good thing.
03:06But particularly in the red meat space, it could have been a little bit more favourable for us.
03:12Unfortunately, that wasn't able to be negotiated.
03:14But this is how it goes with some of these trade deals.
03:17You've got to give a bit and you've got to take a bit.
03:18And in this instance, the red meat sector had to do the giving.
03:21That's it for a bit of an update.
03:23We'll see you when you've got nothing on.
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