How Non-Tariff Barriers Are Hurting Australian Agriculture

When we think about trade barriers, we often picture tariffs—those government-imposed taxes on imports and exports. But what if I told you that a new kind of trade restriction is quietly costing Australian farmers billions?

Enter non-tariff barriers (NTBs). Unlike tariffs, NTBs don’t take the form of direct taxes. Instead, they appear as complex regulations, red tape, and technical requirements that make it harder (and more expensive) for Australian agricultural products to reach global markets. A recent report from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) shows just how damaging these barriers have become.

NTBs: A Growing Burden on Australian Exports

Australia’s agricultural exports have long benefited from global trade liberalization. Thanks to free trade agreements and World Trade Organization (WTO) rules, tariffs on Australian goods have dropped significantly in recent decades. But instead of making trade easier, many countries are now replacing tariffs with NTBs—and the impact is massive.

According to the ABARES report, NTBs are now equivalent to a 19% tariff on Australian agricultural exports. That’s a far bigger burden than the 1% average applied tariff faced in Australia’s top export markets. In other words, NTBs are costing farmers more than traditional tariffs ever did.

What Are NTBs, and Why Do They Matter?

NTBs, also known as non-tariff measures (NTMs), come in many forms, including:

Sanitary and Phytosanitary (SPS) Measures: Regulations on food safety, plant, and animal health.

Technical Barriers to Trade (TBTs): Strict labeling, packaging, and product standards.

Quotas and Licensing Requirements: Limits on how much of a product can enter a market.

These policies aren’t necessarily bad—after all, food safety and biosecurity are important. But when NTBs are overly complex, arbitrary, or protectionist in nature, they drive up costs and restrict trade unfairly.

For example, an importing country might require a unique certification process for Australian beef that isn’t required from other suppliers. Or it might impose biosecurity rules that are technically unnecessary but keep foreign competitors out. The result? Higher costs for exporters and fewer opportunities for trade.

Are NTBs Getting Worse?

The evidence says yes. The ABARES report shows a steady rise in NTBs worldwide, especially in agriculture. Many of these new barriers have emerged as traditional tariffs decline. In some cases, NTBs are being used as a new form of trade protectionism—keeping local industries shielded from international competition under the guise of “food safety” or “environmental protection.”

For Australian exporters, this means more hoops to jump through and higher compliance costs. The ABARES report warns that without intervention, the problem will only get worse.

The Potential Gains of Removing NTBs

The good news? Reducing NTBs could unlock huge economic benefits. ABARES estimates that removing trade-restricting NTBs could bring up to AUD 4 billion in annual benefits to Australian agriculture.

But there’s a catch: NTBs are much harder to remove than tariffs. Unlike tariffs, which can be reduced through trade agreements, NTBs are often tied to domestic regulations and political priorities. Removing them requires diplomatic negotiations, long-term engagement, and strong trade advocacy.

Australia’s government is already working on this. Agencies like the Department of Agriculture, Fisheries and Forestry (DAFF) and the Department of Foreign Affairs and Trade (DFAT) are actively negotiating technical market access issues. But progress is slow—and overcoming NTBs requires ongoing effort.

Final Thoughts: What’s Next for Australian Agriculture?

For Australian farmers and exporters, NTBs represent a hidden trade barrier that’s costing billions. While some trade regulations are necessary, many NTBs go beyond reasonable standards and act as unfair obstacles to competition.

Addressing this challenge won’t be easy, but it’s essential. If Australia wants to continue expanding its agricultural exports, reducing the burden of NTBs must be a top priority.

What’s your take on NTBs? Have they impacted your business? Let’s discuss in the comments! 👇

Source

https://www.agriculture.gov.au/abares/products/insights/non-tariff-barriers#daff-page-main