The United States has a signed a free trade agreement with Korea which will see tariffs on beef exports reduced to zero over 15 years.
Andrew McCallum from Meat and Livestock Australia has told a parliamentary inquiry in Canberra the US has already had one significant tariff cut this year.
"So we are behind the eight ball. Our market share in that market in Korea will come under extreme pressure unless similar tariff reductions come into place in Australia," he said.
Australian beef exports to Korea are worth $1.6 billion per year.
Representatives told the inquiry exports are expected to drop by 36-thousand tonnes this year to 110-thousand.
Andrew McCallum told the committee the government needs to make sure any free trade agreement must eliminate the 40 per cent tariff on beef exports.
"That deliverable is critical given our major competitor in the market, the United States, has secured a reduction in the 40 per cent tariff to zero over 15 years.
That puts us immediately at a competitive disadvantage," he said..
