GTA outlines Australia's Non-Tariff Measures on the World stage
- By: "Farm Tender" News
- Cattle News
- Jul 01, 2018
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Grain Trade Australia (GTA) CEO, Pat O’Shannassy, presented the Australian grain industry NTM (Non-Tariff trade Measures) report to global grain leaders and governments at the 2018 International Grains Council (IGC) Conference in London. GTA called for a free and open global rules based grain trade system. This includes regional trade agreements, supported by a scientific and objective approach to NTMs through Sanitary and Phytosanitary measures. GTA noted that mutual benefits were needed for strong and open trading relationships, and that an open competitive environment was important to provide value to all parts of the supply chain.
The GTA presentation was part of an International Grain Trade Coalition (IGTC) led panel for the 55 IGC government members, focussing on opportunities to promote expansion, openness, and investment in the grains sector. The audience included the governments of Australia, Argentina, Russia, South Africa, Kenya and USA, as well as grain trade companies and industry groups.
The speakers on the IGTC panel (pictured) included Gary C. Martin, President, International Grain Trade Coalition (IGTC), Gerald Masila, Executive Director, Eastern Africa Grain Council (EAGC), Amy Reynolds, Senior Economist, International Grains Council (IGC), Javier Ocampo, Trade Policy Analyst, World Trade Organization (WTO) and Pat O’Shannassy, CEO, Grain Trade Australia (GTA).
“Free Trade Agreements and World Trade Organisation reforms have delivered a reduction in tariff rates across a range of export markets, resulting in the expansion of export market opportunities and growth of the Australian grain industry,” said Mr O’Shannassy.
“While tariffs and quotas still exist and restrict access in some markets, in general they are now less restrictive and harmful for the grains sector than the emerging and growing NTMs that affect trade.”
“NTMs have been found to affect virtually all grains. They impact on the production base of crop production, that being they exist with trading all crops. Many of the NTMs identified were Sanitary and Phytosanitary measures, in particular Maximum Residue Limits (MRLs).
GTA’s presentation also highlighted existing NTMs such as restrictive import permits and certification requirements, which negatively affect the costs and risks associated with global grain trade, while emerging NTMs include regulation of biotechnology and innovative plant breeding products.
It was acknowledged NTMs do include legitimate regulations for the trade in grain, including managing countries biosecurity, but GTA and IGTC called for NTMs to be based on scientific data and risk based assessments to avoid the potential to create highly trade restrictive and harmful NTMs that result in higher risk for exporters, higher prices to consumers and lower returns to farmers.
The impacts of NTMs can be broad and include higher operational and commercial risk for the industry, increased risk of trade bans or restrictions and increased cost of compliance.
The Australian Grain Industry NTM report team included representatives from across industry, led by Grain Trade Australia, GrainGrowers, Grains Industry Market Access Forum (GIMAF), GRDC and was supported by DAWR.
About GTA:
Grain Trade Australia (GTA) is the focal point for the commercial grains industry within Australia. GTA members are responsible for over 95% of all grain storage and freight movements made each year in Australia. Over 95% of the grain contracts executed in Australia each year refer to GTA grain standards and/or trade rules.
The role of GTA is to provide a framework across Industry to facilitate and promote the trade of grain. It provides a foundation upon which the grains industry can operate with confidence meaning participants of the grain value chain can originate grain from producers, manage price and logistical risks, and manage the task of moving grain from farm and central storage to domestic and off-shore destination markets with confidence in the grain product and the terms of trade. GTA plays its part in the value chain by providing core products of Trading Standards, Contracts, Trade Rules, Arbitration and Dispute Resolution, Professional Development and advocacy for Market Access to give the industry a sound foundation for the commerce of grain
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