Non-Tariff Measures Costing Industry Billions: GA

Why It Matters

The findings expose a hidden cost that threatens Australia’s export competitiveness and underscores the urgency for policy reform and evidence‑based trade negotiations.

Key Takeaways

• NTMs act like 20.4% tariff on Australian grains
• $4.6 billion export revenue lost annually
• Report suggests targeted reforms and diplomatic engagement
• Technical regulations, quotas drive market access barriers
• Industry must gather evidence to negotiate NTMs

Pulse Analysis

The shift from conventional tariffs to complex non‑tariff measures has reshaped global agricultural trade, and Australia is feeling the pressure. While tariffs have fallen across many markets, technical standards, residue limits and quota systems now function as de‑facto barriers, inflating compliance costs and limiting market entry. For Australian grain exporters, this regulatory maze translates into a hidden tariff of over 20%, eroding profit margins and discouraging investment in production capacity.

Grains Australia’s latest study leverages ABARES’ baseline research and advanced econometric techniques from ANU and partner institutions to put a dollar figure on these hidden costs. By estimating a $4.6 billion annual revenue shortfall, the report provides concrete evidence that can be used in bilateral negotiations and domestic policy debates. The methodology isolates the incremental impact of NTMs from traditional duties, offering a clear benchmark for measuring future reforms and for benchmarking Australia against its top grain‑importing partners.

The report does more than diagnose the problem; it outlines a strategic roadmap. Prioritising the removal of duplicative or overly stringent regulations, engaging in market‑specific diplomatic talks, and strengthening domestic resilience through coordinated industry advocacy are key steps. By assembling robust data and a unified industry voice, Australian grain exporters can better negotiate concessions, protect market share, and sustain growth in an increasingly regulated global marketplace.