Seafood Trade Assistance Directory
Implementing and evaluating the Australian Seafood Trade Agenda 2016 - 2018 - Seafood Trade Advisory Group (STAG)
Australian seafood exporters still face a number of formal technical (e.g. SO2 in canned Abalone) and informal systemic barriers (e.g. deemed value) to trade which add cost and complexities which in the longer term could result in the opportunities created in the recent conclusion of a suite of FTAs with Asian markets not being fully realised.
The 2014 Seafood Exporters Forum (45 exporters participated) agreed to continue the STAG to continue to focus on key priorities for the most important markets (China, Hong Kong and Japan). Other sectors were invited to join the STAG provided they support the STAG activities with resources and communicate according to the agreed key messages (outlined in the STAG Trade Agenda).
Research on macro economic trends in important markets and potential FTA implementation issues that may impede capitalisation on the opportunities provided by those FTAs and are reflected in the agreed Seafood Trade Agenda priorities for 2016-2018 (attached). Having a unified voice on these priorities and addressing issues as they arise is the cornerstone of the success of the STAG to date.
The STAG needs to coordinate communication and extension of research as well as continue to prioritise research priorities to keep access to global markets. As a relatively new group the STAG needs to formalise partnership arrangements that includes more industry sectors, implement a governance structure and establish a more stable funding base, including the establishment of a secretariat with capacity to respond to issues and responsibility for implementing and reporting on the Trade Agenda.
This project will provide the co-contribution agreed for the PASE funded Seafood Asian Seafood Market Access Project. The funds from this project will be used to ensure that the outcomes of the PASE project are communicated and extended effectively to industry and that industry issues are communicated back to the project team. It will establish a new governance and reporting arrangement for the STAG and negotiate with the newly forming national peak body for it to assume the ongoing secretariat role for the STAG.
Report
1.Consultation with seafood exporters and industry associations to determine and agree on trade and market access priorities for inclusion in the Seafood Trade and Market Access Agenda andAction Plan 2016-2018 (see Appendix 2).
2.Maintaining government relationships and providing seafood input to the priority trade and market access negotiations
3.Communicating with stakeholders (industry, government and communities) about progress addressing the seafood industry trade and market access priorities.
4.Researching and monitoring market and consumer trends in key markets providing a market intelligence service to seafood exporters
5.Developing and maintaining relationships with key organisations (industry, research and government) in key markets to facilitate resolution of trade and market access issues and tomaintain existing market access.
Seafood CRC: Seafood trade and market access portal
Seafood CRC: seafood trade expert panel (SafeFish)
The members of the SAF (industry and government) have recognized the need to provide coordinated, cohesive and robust technical advice to support Australian negotiators and delegations dealing with trade and market access issues. While this expertise is variously available from different sources a more cohesive and collaborative approach will help:
a) ensure that the most appropriate technical expertise is available to support Australian trade negotiations relating to seafood
b) coordinate robust technical advice for input to international trade fora such as Codex and bilateral and multilateral trade agreement discussions
c) deliver a multi disciplinary approach to often very complex trade issues and ensure that Seafood CRC participant business operations and practices are considered in developing Australia’s negotiating positions
d) foster open communication between Australia’s technical trade experts and assist early detection of issues
e) provide a forum for debate and discussion about technical trade issues and their impact on the CRC participant businesses
f) create an international technical trade network and enable Australia’s experts to identify and act on opportunities for national and international collaboration
g) facilitate professional development of existing and new people with technical trade expertise.
Final report
SafeFish originated from the recognition by the members of the former Seafood Access Forum (SAF) (industry and government) of the need to provide coordinated, cohesive and robust technical advice to support Australian negotiators and delegations dealing with trade and market access issues related to food safety. While this expertise was variously available from different sources a more cohesive collaborative approach was required to bring together all relevant stakeholders (industry, scientists, government, and regulators) more collectively. This was the origin of the partnership approach known originally as the Seafood Trade Expert Panel which was then renamed SafeFish in 2011. This project was responsible for ensuring the most appropriate technical expertise was available to support Australian trade negotiations relating to seafood and to coordinate robust technical advice for input to international trade fora such as Codex and bilateral and multilateral trade agreement discussions.
SafeFish has been very successful in delivering a multi-disciplinary approach to often very complex trade issues which has ensured that Seafood CRC participant business operations and practices were considered in developing Australia’s negotiating positions
Project products
Seafood Trade Advisory Group - transitioning to a new communications, governance and operating model
Developing capability and capacity for seafood international trade in new and existing markets
The Food and Wine Collaboration project (F&W project) intends to expand trade across agriculture and fisheries sectors into emerging export markets and/or high-growth, high-potential markets. Building existing and developing new markets is a priority for the industry, not only to identify new opportunities beyond China and reduce the reliance on a single market, but also to take a more proactive approach to leverage Australia’s key bilateral relationships and trade partnerships. South Korea, Vietnam and Indonesia have significant growth potential. The new Federal government has identified market diversification as a priority area for R&D.
South Korea is one of Australia’s largest trading partners and we have had favourable trading and bilateral relationships for a long time, made stronger when the Korea Australia Free Trade Agreement (KAFTA) which came into force in 2014. Recent technical market access wins – in particular, for lobster at the end of 2021, continues to make South Korea an active market for seafood exporters.
South Korea is a stable, advanced, and growing economy and while COVID-19 reduced consumption and business activity, food and beverage consumption hit record double digit, year-on-year growth during the pandemic – driven by e-commerce. Koreans are high consumers of seafood and import more than 70 per cent of their food and agriculture products, with demand for high-end, niche premium food including seafood such as (but not limited to) lobster, sea urchin and yellowtail kingfish is increasing.
Vietnam has one of the fastest growing economies and the World Bank predicts a GDP growth of more than 5.5% pa in 2022. Australian exports during the pandemic rose to $9.7 billion – an increase of 61 percent in 2021. Vietnam’s strong growth and expanding middle-class has increased demand for imported goods including premium food and beverage products such as seafood.
Australia and Vietnam have strong trading relationships and have had a long alliance. It has a commitment to global economic integration and a rules based trading process with a growing amount of free trade agreements including ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP).
With 100 million people and a growing economy, it is expected to surpass Malaysia, Singapore, and the Philippines over the coming years. Vietnam is a strong relationship-based society and being in country and building personal relationships and trust are key pillars for doing business in Vietnam.
Indonesia is one of the fastest growing economies and with strong bilateral relationships supported through favourable trade agreements such as Indonesia-Australia Comprehensive Economic Partnership Agreement (IACEPA and ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), this is a strong potential market for the seafood industry.
According to Euromonitor Consulting (2021), Australia has a good reputation for providing premium products, however recognition of Australian seafood brands overall is relatively low and there is a need to increase awareness and exposure of our products. Establishing and building relationships across retail and food service, supported through embassy representation will help expand market presence. Also, as the market sees strong growth of modern grocery outlets, high-end supermarkets, e-commerce platforms and food service outlets; consumer demand and reach is growing including wealthy Chinese expats seeking premium ‘status’ products such as abalone and lobster. This market represents long-term trading opportunities for the industry.
Succeeding in business across any Asian market – including South Korea, Vietnam and Indonesia involves developing strong business relationships, and a clear understanding of the market and the environment. The F&W project provides an opportunity for SIA and industry to develop this understanding and to build capacity and capabilities across these markets. There is also the opportunity to engage with and learn from other agriculture sectors, Australian representatives, and in-country staff to help build capable leaders in the international trade space and develop long-term beneficial trading opportunities for the industry.