The farm sector is set to be the big beneficiary of a trade deal with the United Arab Emirates (UAE), following news the Australia-United Arab Emirates Comprehensive Economic Partnership Agreement has been signed.

While the National Farmers’ Federation (NFF) has welcomed the deal, announced this week, others say it should be put in context.

In the agreement, tariffs have been removed from Australian exports including beef, sheep meat, dairy, oil seeds, seafood, canola seeds, nuts, honey, chickpeas and lentils - equating to $50 million each year in tariff savings to Australian farmers and food producers.

And that’s good news according to NFF Chief Executive, Tony Mahar. 

“Australian farmers export more than 70 per cent of what they produce, so gaining new and diverse market access is critical to the sector’s resilience,” Mr Mahar said. 

“This agreement also marks a strategic opening into the Middle East, a growing market of more than 58 million people with a heavy reliance on food imports."

Small share of our exports – NSW Farmers

NSW Farmers economist Samuel Miller welcomed news of the agreement but said it needed to be put in a global context. 

“Export to the Middle East for NSW primary industries is a relatively small share of our total exports - $731 million in 2023, of $13.1 billion in total," he said.

“Although it is a small share, it has been growing from around $180m in 2020 (an increase of 300%).”

Mr Miller said the agreement was a win for farmers and would help diversify our markets, which are heavily reliant on Asia.

“However, it isn’t exactly a shift change in the way the state’s farmers are going to be doing business, unless exports to the Middle East start to outstrip Europe and USA.”

Shadow Minister for Trade and Tourism, Kevin Hogan also welcomed news that negotiations had concluded on the Agreement. 

“The Nationals understand the importance and benefit of open and free trade," he said.

“The irony is not lost on us however that this announcement comes just one week after the National Ag Rally out the front of Parliament House, led by WA sheep farmers to protest the Government’s decision to phase out live exports of sheep by sea.

“Live sheep are a key commodity for the UAE, who import for religious, cultural and social reasons. This deal with the UAE could have supported the industry for years to come yet instead they have turned their backs on our farmers and left them out in the cold.”

Live exporters say they are waiting to see more detail on the trade agreement to assess how it will impact them directly.