The historic China-Australia Free Trade Agreement (ChAFTA) continues to deliver benefits for Australia, two years after its entry into force.
Removal or reduction of Chinese tariffs has strengthened our export numbers to our largest trading partner - Australia's goods and services exports to China rose 25 per cent in 2016-17 to a record $110 billion.
In the nine months to September 2017, exports of bottled wine grew 61 per cent to $498 million, skincare products rose 48 per cent to $30.7 million, and unwrought refined lead increased 15-fold to $434 million, compared with the same period in 2016.
The fourth round of ChAFTA tariff cuts also come into effect shortly, on 1 January 2018, for products like abalone, oranges, bottled wine and skincare products. This will deliver another boost for Australian exporters and their suppliers. These tariffs will be cut again each year for Australia until they reach zero, adding to the competitive edge ChAFTA currently provides for Australia.
China is the top destination for Australia services exports, valued at a record $14.7 billion in 2016-17. ChAFTA is enabling our firms to meet Chinese demand for high-quality services in areas such as health and aged care, architecture, construction and education.
ChAFTA helps increase the benefits Australians get from cross-border investment. In 2016, Chinese investment in Australia increased to $87.2 billion, helping Australian companies expand their operations and connecting them with global markets.
After the bilateral review of ChAFTA's service and investment chapters is complete, the Government will seek to open negotiations to enhance ChAFTA commitments in those areas.
Further improving these elements of ChAFTA will benefit Australia and China and reflect the growing importance of services to both economies.
- Trade Minister's Office: (02) 6277 7420
- DFAT Media Liaison: (02) 6261 1555