Government pledges $51.3 million for work on non tariff measures in agriculture.

The money will go towards various trade initiatives, including the additional of six agricultural trade counsellors to boost Australia's presence in important markets, along with money to ensure all stakeholder bodies work cohesively on issues impacting trade.

The funding announcement comes after a report put together by the grains industry found grain exporters were being hamstrung by over 50 forms of non-tariff measures (NTMs) imposed by trading partners according to a new report.

The majority of the 54 NTMs identified in the report were Sanitary and Phytosanitary (SPS) measures, in particular Maximum Residue Limits (MRLs).

Australian grain industry participants have long been pushing for more work on the issue of NTMs which can frequently cause more damage to market opportunities than higher profile tariff restrictions.

The report was part of a project brought together representatives from across the grains industry, led by Grain Trade Australia, GrainGrowers and the Grains Industry Market Access Forum (GIMAF).

David McKeon, joint chief executive of Grain Growers said the investment would be invaluable.

“It’s about strengthening the arms and legs we have on the ground, both here in Australia and with our trading partners,” Mr McKeon said.

”A large chunk of the funds will be spent ensuring we have the right framework and that the stakeholders, whether it is the Department of Foreign Affairs and Trade (DFAT), the Department of Agriculture or agricultural industry bodies are all working together.”

“We need very clear coordination among agencies to clearly identify which barriers are causing the most commercial impact and how they can be tackled.”

​Grain Trade Australia chief executive Pat O’Shannassy said the report had identified 54 NTMs across 15 markets, including many of Australia’s most important destinations for grain.

“NTMs have been found to affect virtually all grains, although the greatest impact overall are for our larger volume crops, wheat, barley and canola,” Mr O’Shannassy said.

And he said while smaller crops may show fewer NTMs, the impact can be significant if the NTM represents a challenging restriction in a key market, placing significant portions of the trade for that commodity at risk.

Some of Australia’s smaller crops have a strong reliance on one market destination, such as Egypt for faba beans or India for other pulse crops.

Tony Russell, executive manager of GIMAF, said MRLs were particularly difficult to manage. 

“The industry is facing challenges due to MRLs in a number of markets which is limiting export opportunities and hurting Australian grain farmers," Mr Russell said.

He highlighted the dramatic impacts NTMS could have on Aussie grain sales.

“Some 35 per cent of NTMs result in either no, or very restricted market access for Australian grains, while nearly 50pc result in either increased compliance costs or compliance risks.”

The report has caught the attention of the Australian government.

 Mr Russell said technical issues such as restrictive import permits and phytosanitary certification requirements were affecting the grains industry, while emerging NTMs include regulation of biotechnology and innovative plant breeding products were an emerging problem.

GrainGrowers’ trade and economics manager, Luke Mathews said sorting out NTMs was critical given the export focus of the Australian grains industry.

“More than 75pc of national grain, oilseed and pulse production is exported,” Mr Mathews said.   

“Continued and improved access to overseas markets is essential for the future success of the industry and grower profitability.”

Mr O’Shannassy said NTMs needed to be the industry’s next focus, after a series of wins on the trade front.

“Free Trade Agreements and World Trade Organisation reforms have delivered a reduction in tariff rates across a range of export markets, resulting in the expansion of export market opportunities,” said Mr O’Shannassy.

“While tariffs and quotas are still important in some markets, in general they are now less restrictive and harmful for the grains sector than the emerging and growing NTMs that affect trade.”