China will begin implementing quota limits on beef imports, including from Australia. Imports exceeding the quota will be subject to high tariffs of up to 55% for three years.
The policy not only restricts major importers such as Australia, Brazil and the United States, but also casts a shadow over the global food supply chain.
Australia, China's main supplier of beef, is in danger of losing a large part of its market. Last year, Australian beef exports to China reached 295,000 tonnes. Starting this year, only 200,000 tonnes will be allowed without tariffs.
This means that more than a third of Australian beef exports are at risk of heavy tariffs that threaten the revenue of a multi-billion dollar industry.
Worse, premium products such as wagyu and Angus may be sidelined. If the quotas are filled first by lower-value meat, premium producers will be forced to compete in an increasingly narrow market, limiting their opportunity to sell at high prices.
The Australian government sees China’s move as going against the spirit of the China–Australia Free Trade Agreement (ChAFTA), which promises tariff-free access to livestock. Industry has warned of a “serious” impact on farmers’ incomes and supply chain stability.
At the same time, China has reopened its market to several other countries, including Ireland, after long-standing restrictions were lifted. This suggests Beijing is balancing supply needs with a desire to protect local farmers.
