ChAFTA delivers for Australian business

  • Media release

Chinese trade data shows encouraging early signs that the China-Australia Free Trade Agreement (ChAFTA) is delivering for Australian business.

Between January and March 2016, Chinese imports of Australian bottled wine grew more than 60 per cent compared to the same period 12 months previously, to reach $200 million, as tariffs were cut twice, from 14 per cent to 8.4 per cent.

With tariffs cut, China's $11.6 million worth of imports of fresh Australian lobster between January and March were triple those of 12 months ago, and exceeded China's entire 2015 imports of Australian lobster. Milk powder and fresh cherry imports more than doubled.

Chinese imports of other products – including fresh mangoes, fresh abalone, fresh and frozen boneless beef, various types of cheese, and hay and chaff – grew impressively as ChAFTA cut tariffs and boosted Australia's competitive position. Imports of Australian manufactures that benefited from tariff cuts – like titanium for pigments, unwrought zinc and various mixed food preparations – also grew strongly.

These impressive results occurred alongside the third round of tariff cuts in early 2016 under both the Korea-Australia Free Trade Agreement (KAFTA) and Japan-Australia Economic Partnership Agreement (JAEPA), which are also driving increased Australian exports to these two major markets where protection is being reduced.

Through the trifecta of FTAs Australian businesses now have preferential access to all three giant north Asian markets – access that is unmatched by other major advanced economies. This positions Australia to continue to capitalise on the rapid expansion of Asia's middle classes and their demand for the high quality produce and other goods we can provide. This means exciting opportunities for Australian businesses and will drive jobs and growth in the Australian economy.

With tariffs on Australian products continuing to be cut annually into north Asian markets, these three FTAs will continue to deliver for Australian business for years to come.

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