MIL-OSI Australia: Insight – Opportunities for Australian malt exports as Colombia temporarily reduces tariffs

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Source: Australia Government – AusTrade

4 May 2022

The Colombian Government has temporarily reduced tariffs on 182 goods arriving from 1 April 2022. Reductions will be in place for 6 to 12 months. The goods include roasted and unroasted malt, and other agricultural goods and inputs (see Table 1 for full details).

Import procedures will also be temporarily eased for companies with strong compliance records.

The tariff reductions aim to stabilise rapidly rising domestic food prices and production inputs.

Implications for Australian exporters

The temporary tariff reductions will reduce the cost of certain products for Colombian importers.

Australia does not currently export any of the affected food commodities to Colombia. However, Australian malt exports to Latin American markets including Mexico, Brazil and Peru have been growing. This indicates there are opportunities in the region.

Australia has market access to Colombia for roasted and unroasted malt.

Exporters should continue to monitor Colombian Government announcements about changes to import tariffs. They should also work closely with Colombian importers and Austrade to identify export opportunities.

Table 1: Reduced tariffs on agricultural commodities

Commodity

HS Code

Tariff

Reduced tariff

Total Australian exports 2021

Colombian imports 2020

Unroasted malt (barley and other cereals)

1107.10

23%

0%

$495m

$14m

Roasted malt (barley and other cereals)

1107.20

23%

0%

$4m

$338k

Prepared foods obtained from cereals

1904

15%

5%

$123m

$29m

Non-alcoholic beverages (excl. water, juice, milk and beer)

2202.99.01

15%

5%

$32m

$43m

Preparations used in animal feed (excl. dog and cat food)

2309.90.20

15%

0%

$11m

$152m

Source: Trademap 2022 and ABS 2022

Australian malt exports snapshot

In 2021, Australia exported $495 million of unroasted malt and $4 million of roasted malt. This included a 17% increase in unroasted malt exports compared with the 2018–2020 average.

Latin America is an increasingly important region for Australian malt exports. Improved market access, good seasonal conditions in Australia and strong demand have seen exports to Mexico, Brazil and Peru grow substantially. Reduced tariffs in Colombia have the potential to further increase Australian malt exports to the region.

Table 2: Australian malt exports to Brazil, Mexico and Peru

Country

First Australian malt exports

Australian malt exports in 2021

Brazil

2019

$50.0m

Mexico

2019

$38.9m

Peru

2020

$15.9m

Source: ABS 2022, Catalogue 9920.0

Figure 1: Australian malt exports to Brazil, Mexico and Peru

Resources

The Manual of Importing Country Requirements has import requirements for the affected commodities to Colombia.

Austrade has more information about the Colombian market.

The Australian Government’s network of Agriculture Counsellors provided information for this article. More information about the Agriculture Counsellor network, including contact details, is available on the Department of Agriculture, Water and the Environment website.

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