RESTRICTED
WORLD TRADE IMA/INV/1
19June1995
ORGANIZATION(95-1630)
International Meat Agreement
INTERNATIONAL MEAT COUNCIL
Inventory ofDomestic Policies andTrade Measures
Australia
Parties agreed to"provide information ontheirdomestic policies andtrademeasures including
bilateral andplurilateral commitments inthebovine meatsector, andshallnotify assoonaspossible
anychanges insuchpolicies andmeasures thatarelikely toaffect international trade inbovine meat
andliveanimals" (Article III:3). TheSecretariat "shall draw upandkeepuptodateaninventory of
allmeasures affecting trade inbovine meatandliveanimals, including commitments resulting from
bilateral, plurilateral andmultilateral negotiations" (Article III:4).
Thedocumentscontainingtherepliestothequestionnaireondomesticpoliciesandtrademeasures
arecirculated under theseries IMA/INV. They willberevised asandwhen changes arenotified.IMA/INV/1
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Information onDomestic Policies andTrade Measures
1. Production
A. Description ofbeefindustry
Australia isamajor producer andexporter ofbeefandvealandtheindustry isofmajor
significance inboththerural andgeneral economy ofAustralia.
Thecattle herdinAustralia numbered some 24.5million at31March 1994. Beefandveal
production totalled 1,824 kt(s)in1993-94 andisforecast ataround 1,785 ktin1994-95.
Thegross value ofproduction ofthebeefindustry totalled $A4,431 million (p)in1993-94.
Thisrepresents 18.5percentofthegross value ofruraloutput of$A23,892 million (p)forthesame
year.
Some 64.8percent(1,182 ktcarcass weight equivalent) oftotalproduction ofbeefandveal
wasexported in1993-94. Theproportion ofproduction exported hasbeenconsistently nearorover
60percentinrecent years, indicating theindustry 'sorientation towards theexport trade. Themain
factor influencing beefprices inAustralia isexport demand, particularly thatfromtheUnited States.
There isaveryhighcorrelation between Australian saleyard prices andprices formanufacturing-grade
beefintheUnited States. Thissituation isbeginning tochange astheUnited States isbecoming less
important andAsian markets more important determinants ofAustralian saleyard prices.
TheAustralian cattle industry isprimarily based onrange grazing ofcattle from birth to
slaughter. However, agrowing proportion ofcattle isbeing prepared through feedlotoperations to
cater forincreased demand forgrainfed produce inNorth Asia.
Theindustry operates essentially inafree-market situation where levels ofproduction,
consumption, exports andprices aredetermined bytheinteraction ofcattle supplies withdemand by
processors catering forthedomestic market, byexporter and,attimes, byproducers forrestocking.
(s)-ABARE estimate, (p)-ABARE provisional.
B. Government policies affecting production
Although direct Government involvement intheindustry islimited, policies relating tothe
Australian cattle industry form anintegral partofoverall policies fortherural sector generally.
Constitutional powers relating toagricultural production restprimarily withtheStates, whose
Governments administer suchmatters asagricultural education, advisory andextension services and
landtenure andsettlement policy aswellasintra-State trading.
AfunctionoftheAustralianandStateGovernmentsistomakeavailabletoproducersinformation
onthemarket situation andoutlook, bothdomestically andoverseas, toassist theminmaking informed
production decisions.
TheAustralian Government isconcerned withproviding assistance totheruralsector including
thecattle industry tofacilitate structural adjustment processes where appropriate. Italsocontributes
towards disease control programmes, andthefunding ofscientific andeconomic research intofactors
affecting production, processing andmarketing intheindustry. Asaresult ofpolicy decisions takenIMA/INV/1
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in1990 theAustralian Quarantine Inspection Service (AQIS) requires 100percentcostrecovery of
export inspection from clients, including industry, using theirservices.
TheAustralianGovernmentaimstofosteraneconomicenvironmentwithinwhichcattleproducers
canadjusttheirproductionlevelstomeetavailabledemandondomesticorexportmarketsatremunerative
price levels, determined bythemarket. TheAustralian Government hascarriage ofbilateral and
multilateral negotiations toseekmaximum favourable access conditions forexported Australian beef.
I. Price policies andrelated measures
Australian cattle producers receive noprice orincome guarantees. Themajority ofcattle are
soldeither attraditional saleyards onaperheadorliveweight basis, orthrough direct transactions
between producers andbuyers. Direct salesareintheformofon-farm salesorthrough theconsignment
ofstock tomeatworks where producers arepaidonacarcass weight andgrade basis. Direct sales
toprocessors according toobjective carcass measurement havebeenencouraged bytheimplementation
ofcarcass classification inmeatworks. Prices received byproducers aredetermined bydemand on
theAustralian andoverseas markets andthelevelofAustralian supply. Asmall amount ofcattle are
soldbydescriptionthroughtheComputerAidedLivestockMarketing(CALM)operatedbytheAustralian
Meat andLivestock Corporation (AMLC).
II. Non-price measures
(a) General assistance
Assistance canbemade available tofarmers intheindustry under theRural Adjustment Scheme
(RAS), primarily intheformofgrants, loans andinterest ratesubsidies tofacilitate structural adjustment
within theindustry. Theoverriding objective ofRASsupport istoassist eligible farmers toimprove
theproductivity, sustainability andprofitability oftheirfarming enterprise. Interest subsidies ofup
to50percentofthecostofcommercial finance maybeprovided forproductivity improvement measures
suchas:adopting technological developments; increasing andimproving resource use(land, capital
andlabour); improving farmprogrammes; adopting sustainable farming practices. Farmers may
alsobeeligible forgrants fortraining toupgrade farmbusiness andproperty management skills, and
toassist withthecostofobtaining expert financial, planning andother advice relating tothefarm
business. Inaddition, farmers without future prospects ofprofitability infarming maybeeligible for
support tore-establish afterselling thefarm.
Onpastoccasions, theAustralian Government hasinitiated emergency assistance measures
toalleviate theplight offarmers affected bynatural disasters. TheStates administer normal natural
disaster relief arrangements, which arepartly funded bytheCommonwealth. These relief measures
areavailable toeligible primary producers intimes ofnatural disaster suchasfloods andbushfires.
Insomecircumstancessuchasprolongedseveredroughtorsubstantialcommoditypricefall,theMinister
forPrimary Industries andEnergy maydetermine, afterreceiving advice fromtheRural Adjustment
Scheme Advisory Council, thatexceptional circumstances exist. Inthiscase,special interest subsidies
ofupto100percentofthecostofcommercial finance maybeavailable.
Australian producers canalleviate income instability tosome extent bytaking advantage of
income averaging provisions fortaxation purposes which areavailable toallprimary producers. In
addition, under theIncome Equalization Deposits Scheme, producers areencouraged tosetasidefunds
during high-income years foruseduring low-income years.IMA/INV/1
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Astheresult oftheGovernment 'swide-ranging microeconomic reforms, cattle producers, along
with allother farms, benefit from general reductions inthelevels ofassistance toAustralia 's
manufacturing industry.
(b) Credit facilities
Cattle producers areabletobenefit fromspecial credit facilities available totheruralindustry
generally through theCommonwealth Development Bank.
TheCommonwealth Development Bank wasestablished tosupplement traditional sources of
development finance forbothprimary producers andindustrial undertakings where credit would not
otherwise havebeenavailable onreasonable terms andconditions. TheBank'smain criterion when
providing credit assistance istheprospect forsuccess oftheventure rather thantheamount ofsecurity
available.TheBankalsoprovidesfinanceonhire-purchasetermsforvehicles,equipmentandmachinery.
(c) Input subsidies
Limited input subsidies areavailable toallfarming industries inAustralia, including thecattle
industry, forexample through Government contributions toresearch. Subsidies onfertilizers have,
however, nowbeenremoved.
Theabattoir industry doesnotbenefit fromgrants orother specific assistance measures from
theAustralian Government. However StateorlocalGovernment-owned abattoirs areattimes provided
withdirect grants orconcessionary loans.
(d) Animal health
TheAustralian Government hascommitted some $16million overthe1993-97 monitoring
phase oftheBrucellosis andTuberculosis Eradication Campaign toeradicate tuberculosis inAustralian
cattle andbuffalo. Australia wasdeclared FreeofBrucellosis inJuly1989 andImpending Freeof
Tuberculosis asfrom 31December 1992.
Australia maintains ahighdegree ofpreparedness torespond quickly toanyincursion ofa
significant exotic animal disease suchasFootandMouth Disease.
TheStates havetheresponsibility tomaintain andrecord outbreaks ofdisease amongst livestock
within theirborders.
(e) Stabilization/subsidy programmes
There arenostabilization and/or direct subsidization programmes offered bygovernmental
orother bodies inAustralia tocattle producers ortoproducers inother sectors which affect cattle
production.
III. Internal prices andconsumption
Pricesatproducer,wholesale,retailorexportlevelsaredeterminedbymarketforces.Promotion
ofbeefandvealonthedomestic market isundertaken primarily bytheAustralian Meat andLivestock
Corporation, which isfinanced byindustry funds. TheCorporation isconcerned tohaltthedeclining
consumption ofbeefandvealinAustralia andispresenting acomprehensive campaign encompassing
bothpromotional andnutritive aspects tothisend.IMA/INV/1
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IV. Measures atthefrontier
A. Customs tariff
Import duties arelevied atthelevels specified inAnnex A.
B. Import measures attariff linelevel
AsaMember oftheGATT since itsinception, Australia hasplaced considerable emphasis
onavoiding measures contrary tothespirit oftheAgreement. Apart from 2percentdutyremoved
on1July1988, Australia hasnotimposed quantitative restrictions oranyform oflevyonimported
bovine meatandlivestock.
Australia hasacceded totheCustoms Commodities Classification (CCC) Nomenclature
Convention andissoobliged toobserve itsrequirements initstariff. There arenobilateral commitments
ortariff ratesbinding onimports ofbovine meatandlivestock intoAustralia.
RegulationsapplyingundertheCommerce(TradeDescriptions)Actrequirethatimportedarticles
usedforfoodmusthaveatradedescription. Thisisrequired tobeintheEnglish language andshould
comprise details ofthecountry inwhich thegoods areproduced, atruedescription ofthegoods and
astatement ofthemetric weight ormeasure ofthegoods. Asindicated inAnnex A,aproduct imported
under tariff items 0201, 0206 and1602.20.00 requires suchamarking.
C. Measures affecting thelevelofexports
Nosubsidies orrefunds areprovided inAustralia forexports ofbeefandvealproducts orlive
cattle andcalves.
Allbeef(except thatexempted under Order 7ofthePrescribed Goods (General) Orders)
(Annex B)prepared forexport must beprocessed inanestablishment registered forexport bythe
Department ofPrimary Industries andEnergy (AQIS). AQIS isresponsible forthedevelopment and
maintenance ofAustralian hygiene standards withrespect tolivestock andmeat, theinspection ofall
foodproduced inexport establishments andthecertification ofexported meat inaccordance with
requirements ofoverseas countries.
Australian exports ofredmeat(forhuman consumption) andlivestock mayonlybemade by
persons orfirms licensed bytheAustralian Meat andLivestock Corporation, astatutory authority.
Itisfunded byindustry levies onlivestock slaughterings andonexports ofliveanimals.
TheAMLC provides marketing services toindustries falling within itscharter (cattle, sheep,
goats andbuffalo), particularly through domestic andexport promotion, market research andmarket
information.
Through itsability toissue, suspend orcancel export licences theCorporation hasthepower
toguard against unacceptable trading conduct andsoprotect Australia 'sinternational trading image.
TheCorporationhasthepowertonegotiateshippingfreightratesandissueorderstoexportersconcerning
maximum freight ratesandapproved carriers.
Inaddition theCorporation hasthepower toengage inexport trading ofmeatandlivestock
initsownright. TodatetheCorporation hasnotuseditstrading powers, although theformer Australian
Meat Board didnegotiate direct salestotheUSSR in1970-71 and1975-76 andtotheUnited States
Defence Forces in1967and1968. ItisalsoopentotheCorporation, subject toMinisterial approval,IMA/INV/1
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toactassoletrader toparticular markets when itisconsidered thatsuchaction would bestserve the
interests oftheAustralian meatindustry. TheCorporation may, subject toMinisterial approval, also
dealinlivestock andmeatfutures. Neither ofthese powers havebeenexercised.
Tomeet quantitative restrictions inanyparticular market, theCorporation canintroduce
arrangements tocontrol Australian exports tothatmarket. Control schemes inthepasthaveapplied
totheUSA, theEECandJapan. These schemes weredesigned tofacilitate orderly export marketing
andtoensure thatexporters didnotexceed therestraint orquota limits setbytheimporting country 's
government. Atpresent, acontrol scheme operates forsheepmeat, goatmeat andbuffalo meat and
high-quality beefintheEEC andtheMeat Import Lawoperates forbeef, veal, mutton andgoatin
theUnited States pending implementation oftheUruguay Round.
D. Health regulations
Inviewofitsisolation geographically, Australia enjoys arelatively disease-free status compared
withmany other beef-producing andconsuming countries. Inorder toprevent theentry ofexotic
diseases, theimportation ofliveanimals andanimal products ispermitted onlysubject tocompliance
withtheprovision ofquarantine legislation.
TheAustralian Department ofPrimary Industries andEnergy (AQIS) hastheresponsibility
fortheadministration oftheplant andanimal sections oftheQuarantine Act1908. Theimportation
ofanimals, partsofanimals, animal products, andcertain goods isonlypermitted subject tocompliance
withthequarantine legislation andinallcases must beaccompanied bydocuments specified inthe
legislation.Onarrivaltheimportationwillbesubjectedtoinspectionandtreatmentasmaybeprescribed.
Thisapplies alsotobiological materials.
Importation issubject torestriction inthecaseofcertain countries ormade subject tocertain
conditions according tothedisease status ofthecountry wishing toexport toAustralia andthedegree
ofassessed quarantine riskassociated withtheanimal oranimal product concerned.
Inthecaseofmeat, current legislation (seeAnnex C)nowallows theimportation ofuncooked
meatdepending onthespecies oforigin andthedisease status ofthecountry oforigin; andcanned
meatfrom anycountry onthecondition themeatbesubjected toanapproved cooking process inan
approved container.
Currently, livecattle andgenetic material maybeimported fromselected countries depending
onthedisease status ofthecountry oforigin. Cattle from NewZealand arepermitted entry without
quarantine. Cattle fromother approved countries arerequired toundergo aperiod ofquarantine, either
attheCocos Islands Animal Quarantine Station oratoneofthemainland quarantine stations. The
disease security offered byembryos allow theirimportation fromcountries (e.g.Africa) fromwhich
theimportation oftheliveanimals would notbeconsidered.IMA/INV/1
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ANNEX A
Import Duties onEdible Meat, Meat Products andOffals Derived from Bovine Animals
Tariff item Commodity General tariff Preferential tariff
0102.0000 Live animals ofthebovine species
Restrictions: Prohibited imports
Quarantine (animals)Free Free
0201 Meat ofbovine animals, fresh orchilled Free Free
0202
ex0206Meat ofbovine animals, frozen
Edible offal ofbovine animals, fresh,
chilled orfrozen
Exclusions: meat, raw, deepfrozen,
coated withbatter based onflour;
sausage casings; goldbeater strands; fat
Restrictions: Commerce marking
Quarantine (animals)Free Free
ex0210 Meat andedible meat offal ofbovine
animals salted, inbrine, dried orsmoked
Exclusions: fat,sausage casings;
organo-therapeutic glands (dried)
Restrictions: Commerce marking
Quarantine (animals)Free Free
ex0504 Guts, bladders andstomachs, whole and
pieces thereof
Restrictions: Commerce marking
Quarantine (animals)Free Free
1601 Sausages andsimilar products ofmeat,
meat offal orblood
Restrictions: Commerce marking
Quarantine (animals)9%
DC: 4%9%
PNG: Free
NZ: Free
CAN: 9%
1602.20.00 Prepared orpreserved liver ofany
animal
Restrictions: Commerce marking
Quarantine (animals)9%
DC: 4%9%
PNG: Free
NZ: Free
CAN: 4%
1602.50.00 Prepared orpreserved meat ofbovine
animals (except liver)
-excluding meat flour, soups andbroths,
petfood
Restrictions: Commerce marking
Quarantine (animals)9%
DC: 4%9%
PNG: Free
CAN: 4%
FORUM
ISLANDS: Free
NZ: FreeIMA/INV/1
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ANNEX B
Exception
7. Adeclaration inOrder 6doesnotextend toprescribed goods thatare:
(a) Goods thatareships'stores oraircraft stores, being brought intoorshipped inAustralia
fortheuseofthepassengers andcrews orfortheservice oftheshiponavoyage, orthe
aircraft onaflight, from Australia;
(b) goods, other thanfish,thatarenotproduced, processed ormanufactured inAustralia;
(c) goods, other thanfish, thathave notbeen produced, processed ormanufactured in
Australia, being goods thathavebeenimported intoAustralia andheldinbond;
(d) goods,otherthanfish,thatareimportedintoAustraliaandre-exportedinthesamecovering
andunder thesametradedescription asthecovering andthetradedescription inorunder
which, asthecasemaybe,theywere imported;
(e) goods thatareconsigned toanexternal Territory forconsumption within thatTerritory;
or
(f) goods thatareexported inaconsignment thatdoesnotexceed:
(i) inthecaseofliquid -10L;
(ii) inthecaseofdried fish-2kg.; and
(iii) inanyother case-10kg.
Exception nottoapply
8. Where goods ofthekindreferred toinparagraph 7(e)or(f)areexported toaforeign country
alawofwhich requires thatthegoods comply withtherequirements ofthatcountry, thereference
ineither paragraph togoods ofthatkindshallbereadasnotincluding areference togoods thatare
tobeexported tothatcountry.