Fischer welcomes Philippines trade breakthrough

Media release

The Acting Prime Minister and Minister for Trade, Tim Fischer

1 February, 1998

Fischer welcomes Philippines trade breakthrough

Deputy Prime Minister and Minister for Trade, Tim Fischer, has welcomed changes to tariff arrangements in the Philippines which will provide substantial benefits for Australian exporters.

Mr Fischer said reductions in a total of 900 tariff items were included in an Executive Order signed on 22 January 1998 and the lower rates will be implemented during 1998-2000.

"The changes involve the removal of beef from the Philippines tariff quota scheme, the Minimum Access Volume (MAV), and reduced import tariffs on some of Australia's major exports items to the Philippines."

Mr Fischer said that major Australian beneficiaries will be exporters of essential food items including frozen beef, fruit, vegetables and cereals. Iron, steel and some aluminium tariffs are also affected.

"Australia's $40 million beef trade is set to benefit from the removal of tariff quotas on imports of frozen beef and tariff rates will be progressively reduced to 10% by the year 2000. This compares with current an in-quota tariff of 30% and an out of quota tariff of 50%."

"The $114 million live cattle trade will also benefits with tariffs reduced on feeder and fat cattle from 30% to 3%. These changes should open opportunities for the export of feeder and fat cattle."

"Reduced tariffs should directly impact on consumer prices in the Philippines for essential food items such as beef, fruit, vegetables and cereals, helping to cushion the impact of the depreciating peso on the volume of Australia's exports to the Philippines."

Mr Fischer said that the decision by the Philippines Government provided clear evidence that current economic difficulties in East Asia would not alter the regional commitment to trade liberalisation. "

"It will send also a clear message about the strength of the Philippines economy and the positive market opportunities for Australian firms," he said.

Local Date: Thursday, 20-Nov-2008 22:46:50 EST