Trade barriers impacting Australian horticulture
Non-tariff measures (NTMs) are additional requirements that a country can introduce to ensure imported products are safe and healthy for consumers. This project delved into the complex world of NTMs in 13 international markets to better understand their impact on specific commodities in the Australian horticulture industry.
Market access is critical for the Australian horticulture industry. Australian growers export approximately $3 billion worth of horticultural commodities annually, accounting for about 25% of Australia’s total production.
Although there has been a general decrease over the last 10 years in tariffs that restrict trade, there has also been a steady emergence of non-tariff measures (NTMs), which can directly impact export markets.
What are non-tariff measures?
NTMs are requirements that countries apply to traded goods separate to ordinary customs tariffs. They are applied to ensure imported products are safe and healthy for consumers and protect countries from harmful pests and diseases that imported goods could introduce.
For Australian producers and exporters, NTMs are a normal part of doing business. NTMs can lead to benefits from both an import and export perspective, however export markets often experience a decrease in activity as compliance costs rise and exporting becomes less profitable.
About this project
To facilitate collaboration between industry and government in addressing NTMs that are unfair or overly costly barriers to trade, RMCG were engaged by Hort Innovation in 2021 to identify and understand the impact of NTMs applied to specific commodities and more broadly across the horticulture industry. We looked at 14 different horticultural commodities across 13 international markets.
To inform the review, data was collated via desktop research, analysis of trade and NTM data sources, and industry consultation.
For the Australian horticulture sectors reviewed, a total of 1,734 NTMs were identified across 13 importing countries. New Zealand imposes the highest number of NTMs (527) followed by Thailand (266), China (145) and South Korea (130).
The table grape, citrus and mango industries are subject to the highest number of NTMs. This is likely due to the fact that these commodities are potential hosts to a number of fruit flies (such as Queensland Fruit Fly and Mediterranean Fruit Fly), and that a number of protocol markets have been developed for these products.
The review identified a range of challenges and barriers associated with NTMs impacting on producers, supply chains and the various horticultural sectors. The impact of these on the Australian horticulture industry include:
- Reduced competitiveness due to increased costs associated with treatment, packaging and certification
- Reputational damage in key markets due to poor product quality as a result of fumigation treatments and held product at importing markets
- Reduced appetite to export due to perceived risks associated with poor or inaccurate information and political tension
- An inability to forward plan due to sudden changes in quotas
- Lack of market access or rejection of product at importing country when Australian exporters are unable to meet maximum residue limits (MRLs) due to sudden changes in allowed limits or the imposition of limits dictated by supermarkets.
RMCG developed recommendations for those involved in the trade of horticultural products based on insights from the consultation process. These are detailed in the project summary available here.
Individual commodity reports
Individual reports were also developed for a range of commodities detailing the key NTMs of significance. These reports can be accessed below:
- Apple and pear
- Avocado
- Berries (blueberry and strawberry)
- Carrot
- Cherry
- Citrus (orange, lemon, mandarin and lime)
- Leafy greens (lettuce, cabbage, spinach, Brussel sprouts and rocket)
- Mango
- Melons (watermelon, honeydew and rockmelon)
- Nuts (almond, brazil nuts, chestnuts, macadamia, pecan, pistachio and walnut)
- Onion
- Potato
- Summerfruits (peach, nectarine, apricot and plum)
- Table grapes.
More information
For further information or to access a copy of the full report please contact Dr Kristen Stirling on 0488 908 416.
This project was managed by Hort Innovation and supported by funding from the Department of Agriculture, Water and the Environment.
