World Grain - October 2015 - 66

FEATURE: AUSTRALIA SEEKS FTA'S WITH ASIA

ing market, Australia is very well positioned, and that's why we are intending
to and planning to expand our businesses here in Australia," Takahashi said.
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of FTA's for Mitsui & Co., naming
China, Japan and South Korea as three
key North Asian partners for Australian
grain. Talking about the Japanese economic partnership agreement in particular, Takahashi said the country was
one of Australia's largest buyers of its
produce with a long and stable trading
relationship, referencing the country's
importation of 1 million tonnes of grain
each year, primarily for the manufacture
of udon noodles.
"Our Japanese wheat customers are
always saying, 'Don't forget old friends
like Japan,' when there are so many new
Andy Crane, CEO, CBH Group, said he believes Asian investors will be attracted to the Australian grain friends looking to supply grain from
industry because of its geographic proximity and security of supply. Photos courtesy of the Australian
Australia," Takahashi said.
Grains Industry Conference.
7DNDKDVKLDGGHGWKDWWKHPRVWVLJQL¿to have a strong voice. If we don't make and second largest on the west coast. cant part of the Australia/Japan agreethose submissions right at that moment, Traditionally, Mitsui & Co. was a FOB PHQW ZDV WKDW $XVWUDOLD ZDV WKH ¿UVW
we get left off the agenda."
buyer of grain, but after the deregulation major agricultural exporter to secure an
Crane praised Grain Trades Australia's RI WKH ZKHDW LQGXVWU\ LW KDV GLYHUVL¿HG agreement of its type with Japan.
(GTA) contribution in this area.
to acquire grain from up-country with
³$XVWUDOLD VHFXUHV WKH ¿UVWPRYHU¶V
"GTA has a really strong and ongo- a mixture of collaborations and a 25% advantage in various export commodiing role in making sure we are well stake in Plumgrove.
ties like grains or agricultural prodrepresented at those important stages in
The company is a global grain trader, ucts. That's the most important thing,"
negotiations when they are looking for exporting a combined 16 million tonnes Takahashi said.
practical examples," Crane said.
of grain from major production areas in
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South America, North America, Russia DGYDQWDJH ZLOO EH YHU\ EHQH¿FLDO IRU
SCOPE OF THE ASIAN MARKET
and Australia into Asian markets as well the Australian grain industry and leaves
Following Crane was Takahashi, as emerging markets in the Middle East, the door open for a greater share in the
Mitsui & Co., Australia, who started his Africa and Europe.
Japanese wheat market.
presentation with the company's hisTakahashi spoke of Australia's role
WRU\ LQ $XVWUDOLD IURP LWV RI¿FH RSHQ- within the company's portfolio.
CHINA-AUSTRALIA FTA
ing in 1901 to today where it is the third
"Asia is our focus. Considering the
During the question-and-answer seslargest grain exporter on the east coast proximity of this growing and emerg- VLRQWKHSDQHOZDV¿UVWDVNHGZKHWKHU
they thought China would eventually
open up its wheat and canola market
Quick facts on proposed China-Australia FTA
to Australia. Both grains are exempt
from tariff reductions as China argued
* Australia's agricultural trade with China in 2013-14 was $9 billion, an
they have already conceded this to
increase of $4 billion from 2010-11.
the WTO.
x Calls for immediate removal of barley and sorghum tariffs.
According to the panel, it was unx Calls for immediate removal of a 2% tariff on oats, buckwheat, millet
likely China will hold this position, as
and quinoa.
x Calls for removal of 15% tariff on cottonseed within four years.
a growing population will pressure the
x Calls for removal of 10% tariff on malt and wheat gluten within four years.
country to feed a growing middle class.
x Calls for removal of 7% tariff on pulses within four years.
In addition, the panel discussed how
other markets like Japan would also
66

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