Free Trade Agreements

Since the 1970s, Australia has progressively liberalised its agricultural sector through the reduction of tariffs, quotas, and other trade barriers. This reform agenda has contributed to improving productivity, attracting capital, and facilitating the adoption of new technologies across farming and agribusiness.

Today, a network of free trade agreements provide Australian agricultural exporters access to global markets. These agreements reduce or eliminate tariffs, improve quota access, and establish rules on sanitary and phytosanitary measures.

The recent Australia-United Arab Emirates Comprehensive Economic Partnership (2025) and the Indonesia-Australia Comprehensive Economic Partnership Agreement (2020) offer Australian agricultural products preferential access by reducing or eliminating tariffs in two growing markets.

In terms of global initiatives, Australia is the permanent Chair of the Carins Group, which seeks to liberalise agricultural markets world-wide.

Trade

Exports

Historically, Australia has exported more agricultural products than it has imported, with over 70 per cent of our agricultural production sold overseas. Wheat and beef are the largest agricultural exports, and 7th and 11th largest exports overall.  In 2023-24, Australia’s agricultural exports were valued at $71.6 billion. As of 2025, the agricultural sector comprises 15.1 per cent of total exports.  

A major challenge for Australian exporters is high trade barriers in foreign markets, notably in the form of subsidies for domestic agricultural producers. These subsidies give domestic producers an artificial advantage over Australian exporters.  

 Top 5 exports 2023-24

1.      Beef and veal: $12.4 bn

2.      Wheat $9.9 bn

3.      Canola $ 4.7 bn

4.      Cotton $4.2 bn

5.      Horticulture $3.4 bn

Top 5 export destinations

1.      China: $16.2 bn

2.      United States: $8.0 bn

3.      Japan $ 5.7 bn

4.      Republic of Korea: $4.1 bn

5.      Indonesia: $4.1 bn

Imports

While Australia is a major agricultural exporter, it also imports a wide range of food and agricultural products that complement domestic production, particularly processed foods and beverages.

In 2024-25, Australia imported $30.2 bn of agricultural goods.

Top 5 imports 2024-25

1.      Food preparations: $2.0 bn

2.      Bread and pastry $1.2 bn

3.      Spirits: $0.9 bn

4.      Coffee: $0.9 bn

5.      Wines: $0.9 bn

Top 5 import destinations 2024-25

1.      China: $5.4 bn

2.      New Zealand: $4.2 bn

3.      United States: $2.9 bn

4.      Thailand: $1.8 bn

5.      Malaysia: $1.6 bn

Investment

Foreign direct investment in Australian agriculture remains limited compared with other sectors of the economy. In 2023, the stock of foreign direct investment in agriculture, forestry, and fisheries was approximately $4.1 billion, representing around 0.3 percent of Australia’s total FDI stock.

The majority of farmland is Australian owned, with only 13 percent categorised as ‘foreign-held’ through significant foreign investment stakes. Of this, China is the largest investor in Australian agricultural land, followed by the United Kingdom, Canada, the Netherlands, and the United States.

Relative to other OECD economies, Australia’s FDI restrictiveness in agriculture is high. The Australian Government seeks to balance the benefits of foreign investment, including access to capital, technology, and export networks, with national interest considerations through screening mechanisms and regulatory oversight.

Agriculture continues to make a major contribution to Australia’s international trade and investment profile. Its strong export orientation and established reputation for quality underpin its continued contribution to Australia’s economy. While the sector benefits from extensive free trade agreement coverage, it continues to face challenges from trade-distorting subsidies and market access barriers.

For those seeking further information, readers can refer to the Department of Agriculture, Fisheries, and Forestry’s report on Foreign Direct Investment in Australian Agriculture and their Snapshot of Australian Agriculture 2025.