Australian Agriculture Minister Warren Truss has unveiled a new method of allocating quotas for beef exports to the US.
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The US is Australia’s main destination for beef exports but Australia is limited to 378,214 metric tons of tariff-free beef exports to the US per year. A 26% tariff applies to anything over that amount. Last year, the tariff-free limit was breached for the first time since it was introduced back in 1994, reported Dow Jones International.
The tariff-free quota is shared around among the beef industry according to how much a company exports in the previous year.
The new system means that quotas will be worked out according to an 80% US/20% global model. This means that in 2003 companies will be able to export up to 80% of their average beef exports to the US during 2001 and 2002, plus 20% of their average global exports during that time, including exports to the US.
Opposition to the new system is widespread, with the Senate Rural Affairs Committee and some sections of the beef industry preferring beef export allocations to be assigned on a global export basis.
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