Essay: Australian Dairy Industry And RCEP Potential - Submission To RECP.

You have to write a legal brief (i.e. submission) on behalf of a real or fictional stakeholder of your choice. Stakeholders may include:
• state and territory governments
• peak industry bodies
• individual companies
• academics
• unions
• consumer groups
• interested individuals/NGOs
 

Economic and Social Contributions of the Australian Dairy Industry

The dairy industry in Australia is one of the major rural industries of the country. On the basis of the farm gate value of production, industry has been ranked at third place falling behind beef and wheat industries. The 6,128 dairy farmers of Australia produce nearly 9.5 billion litres of milk. Out of this production, approximately 35% of it is exported. In this way commit includes a wide range of value added and innovative dairy products. Same time the industry generates and export income of nearly 3 billion dollars.

The dairy industry of Australia can be described as the largest value added Food Industry. It contributes 13 billion dollars at wholesale to the economy. Similarly the industry employees directly nearly 39000 people on farms and those involved in the processing of milk.

The dairy processing and service industry is generally based in regional areas. Due to this reason the industry produces significant employment and economic activity in the regional areas of Australia. It is also worth mentioning that more than 100,000 people in Australia rely on coming for their livelihoods. These include veterinarians commerce scientists animal nutritionist transport industry feed suppliers financial Advisors. Nearly 97% of dairy farms in Australia owned by family businesses. The quality and safety processes adopted by the dairy industry in Australia are among the best in the world. They have a global reputation of being innovative and reliable supplier. Dairy is very nutritious food and it has diverse and growing range of ingredient applications. With a  farm gate value of 4.7 billion, dairy has become a major contributor in the economic and social fabric of the regional communities in Australia, particularly in south east and also in national economy keeping in view the trim linkage to the retail and food service industry also in case of export. 

The dairy industry has the potential of achieving substantial growth in the next decade for fulfilling the rising domestic and international demand. However, achieving this growth potential and expanding the economic social and environment benefit by the industry relies on the presence of transparent and open trading system and also on the regulatory environment. Under the circumstances The industry welcomes a chance to present the submission on RECP.

It can be expected that the RECP is going to continue with the increased trade liberalization taken place during the last few years. The dairy industry Australia also appreciates d commitment on part of the Federal Government of Australia for creating an agreement for the 21st Century by removing tariff as well as non tariff impediments letter present for the trade in goods. Rapid increase can be seen in case of the import of dairy products during the last several years. When implemented, the RECP is going to create export opportunities for the dairy industry in Australia. Particularly, the industry has the potential of growing experts to a large number of countries. 

Potential Growth and the Importance of a Transparent and Open Trading System

The Regional Comprehensive Economic Partnership (RCEP) negotiations included the ASEAN member states and also the tax free trade agreement (FTA) partners of ASEAN. These included Australia, India, China, Korea and New Zealand. It needs to be noted that these nations are significant economic partners as well as the neighbors of Australia. It is also worth mentioning that the RCEP nations include nine of the top 12 trading partners of Australia. Similarly, it covers 60% of two-way trade of Australia in goods and services that has been valued at $392.4 billion. Australia has diverse and broad range of interests related with trade and investment in RCEP countries ranging across almost all sectors of the economy. These include agriculture, services, resources and manufacturing. During the last decade, there has been a significant rise in the trade of Australia with RCEP countries. As a result, the annual growth of 10.6% has been recording as against the overall annual growth of Australia of 7.8% in two-way trade. 

The present assignment and evaluation has been made if RCEP has the potential of delivering significant opportunities for international business. The evaluation has been made from the viewpoint of Australian Dairy Industry Council Inc. and Dairy Australia as a stakeholder. According to the government of Australia, RCEP has been claimed as a major foundation stone of the future prosperity of the country. However it is believed that the RCEP great deal will have a significant impact on agriculture in Australia. However, there several experts who believe that the trade deal is going to damage food sovereignty that was the result of earlier trade agreements including the trade agreements of the WTO. Therefore, these experts apprehend that RCEP is going to threaten the livelihood particularly in sectors like agriculture, dairy, meat and other agricultural products as it will allow duty-free import of subsidized products from other countries. 

In the present submission, the objectives of economic integration strengthening economic cooperation between the participating nations and achieving equitable economic development have been supported. In its submission, the industry draws on the Guiding Principles in which it has been mentioned it to include provisions for the purpose of facilitating trade and investment and also to enhance and transparency in trade and investment relations that have arisen between the participating nations and also to facilitate participating nations. It is believed that commercially meaningful liberalization of dairy trade from EIF will be beneficial for the consumers. 

Regional Comprehensive Economic Partnership (RCEP) and Dairy Industry

Policy Position of Dairy Industry: it is believed by the industry that genuinely liberalizing RCEP agreement involves agricultural and particularly dairy and a heart with zero carve-outs in case of the sensitive products. In this regard it is essential to have a plurilateral approach. Therefore, the industry supports the adoption of this approach regarding the goods negotiations which include holding consultations with the stakeholders and creating a single tariff schedule that results in a call coherent, unified structure for dairy trade in the RCEP region.  

Need for transparency: transparency also has basic significance during the negotiations, including the consultations that take place with different stakeholders. The industry has noted the substantial commitment of resources as well as the complexity involved in negotiating an agreement between 16 nations who are trying to conclude the negotiations involving ambitious goods and services outcome rapidly. 

Regional value chains: the participation by small and medium-sized dairy enterprises in trade opportunities that are result of RCEP is a significant goal for the industry. There is also a need for establishing mechanisms in RCEP that are capable of enhancing the expansion and functioning of regional value chains, including liberal ROOs and regulatory cooperation.  

MFN clause: In view of the rapid expansion being witnessed by bilateral and regional trade agreements and aspirations of major economic power for establishing preferential access rights, an MFN clause which covers all dairy products and food ingredients is considered as an integral part of the agreement. This would maintain a level playing field for the market access to the dairy products originating in Australia.

The dairy industry in Australia is one of the major rural industries of the country. On the basis of the farm gate value of production, industry has been ranked at third place falling behind beef and wheat industries. The 6,128 dairy farmers of Australia produce nearly 9.5 billion litres of milk. Out of this production, approximately 35% of it is exported. In this way commit includes a wide range of value added and innovative dairy products. Same time the industry generates and export income of nearly 3 billion dollars.

The industry of Australia can be described as the largest value added Food Industry. It contributes 13 billion dollars at wholesale to the economy. Similarly the industry employees directly nearly 39000 people on farms and those involved in the processing of milk.

The dairy processing and service industry is generally based in regional areas. Due to this reason the industry produces significant employment and economic activity in the regional areas of Australia. It is also worth mentioning that more than 100,000 people in Australia rely on coming for their livelihoods. These include veterinarians commerce scientists animal nutritionist transport industry feed suppliers financial Advisors. Nearly 97% of farms in Australia are owned by family businesses. The quality and safety processes adopted by the dairy industry in Australia are among the best in the world. They have a global reputation of being innovative and reliable supplier. Dairy is very nutritious food which is diverse and growing range of ingredient applications. With a  farm gate value of 4.7 billion, dairy has become a major contributor in the economic and social fabric of the regional communities in Australia, particularly in south east and also in national economy keeping in view the trim linkage to the retail and food service industry also in case of export. 

Policy Position of Dairy Industry

The dairy industry has the potential of achieving substantial growth in the next decade for fulfilling the rising domestic and international demand. However, achieving this growth potential and expanding the economic social and environment benefit by the industry relies on the presence of transparent and open trading system and also on the regulatory environment. Under the circumstances The industry welcomes a chance to present the submission on RECP. 

It can be expected that the RECP is going to continue with the increased trade liberalization taken place during the last few years. The dairy industry in Australia also appreciates d commitment on part of the Federal Government of Australia for creating an agreement for the 21st Century by removing tariff as well as non tariff impediments letter present for the trade in goods. Rapid increase can be seen in case of the import of dairy products during the last several years. When implemented, the RECP is going to create export opportunities for the dairy industry in Australia. Particularly, the industry has the potential of growing experts to a large number of countries. 

RCEP provides chance to the Australia to grow diary services and also to use the expertise of the industry in research and development for assisting in the development of productivity and profitability of dairy and food supply in Australia. Some of the significant Australia has considerable expertise include farm management, cattle breeding, dairy processing, cold supply chain, animal welfare, city and environment, innovative Dairy ingredient applications, energy and water conservation, and skill development for this is an retail sectors and also in dairy marketing. This type of knowledge is particularly useful for improving productivity and also in organizing marketing of milk in RCEP Nations where it will particularly create conditions it will be helpful in increasing the price used by the farmers for their milk.

The dairy industry in Australia has prospered result of its overseas investment more than 100 years. As a result of foreign direct investment, the competitiveness of supply chain increased by delivering sophisticated equipment, better technical skills that result in improving the innovation and quality of the product and also with the help of the adoption of progressive management practices. The industry feels trade and investment go hand in hand use of creating a double game. As a result, investment clauses are sought in RECP for the purpose of encouraging a mutually beneficial two way flow as it has been noted that the general exemptions provided by GATT article XX are required to apply. These include the prevention or the enforcement of the measures contracting party that are considered to the respective government for the purpose of protecting public morals, protecting human law plant life or for health all related with the conservation of resources. It has been seen that the increasing movement of people is also related with trade and investment is it delivers technical skills relationships and business acumen. Under the circumstances the dairy industry in Australia supports and agreement that allows the movement of natural persons within the country for the purpose of supplying a defined service.
Significance of improved market access: As a result of the fact that the trading environment is becoming more competitive due to number of access arrangements and also on account of the increased focus of the  US and EU.

On the other hand, in 2016, RCEP nations accounted for 42.5% after Global Dairy trade. The same figures in 2008 were around 31.8%. This growth reveals the pivotal and expanding role played by industry of the region.   

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