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China-Australia Free Trade Agreement

27 August 2015

China is Australia’s largest agriculture and fisheries export market, worth $9 billion in 2013-14, up from $5 billion in 2010-11. ABARES predicts that China will account for 43% of global growth in agricultural demand by 2050.

Agriculture and Processed Food

China is Australia’s largest agriculture and fisheries export market, worth $9 billion in 2013-14, up from $5 billion in 2010-11. China’s demand for high-quality agriculture and food products is growing rapidly with ABARES predicting that China will account for 43% of global growth in agricultural demand by 2050.

The absence of a bilateral FTA with China has meant Australian producers and exports have faced significant tariffs on agricultural products and have been at a competitive disadvantage to countries that have an FTA with China.

China’s products into Australia

Consistent with all Australia’s FTAs, Australia will eliminate remaining tariffs on agricultural and processed food imports from China. To allow adjustment by domestic industry, the elimination of some of these tariffs, in particular on a range of canned fruit products and peanuts, will be phased in over 3 years.

Selected Key Outcomes within the Agriculture and Processed Food industry sector:

Beef

  • Elimination of tariffs on beef imports (currently ranging from 12-25%) within 9 years
  • Elimination of the 12% tariff on beef offal within 4-7 years

Dairy

  • Elimination of the 15% tariff on infant formula within 4 years
  • Elimination of the 10-19% tariff on ice cream, lactose, casein and milk albumins within 4 years
  • Elimination of the 15% tariff on liquid milk within 9 years
  • Elimination of the 10-15% tariff on cheese, butter and yoghurt within 9 years
  • Elimination of the 10% tariff on milk powders within 11 years

Horticulture

  • Elimination of the 10-25% tariff on macadamia nuts, almonds, walnuts, pistachios and all other nuts within 4 years
  • Elimination of the 11-30% tariff on oranges, mandarins, lemons and all other citrus fruits within 8 years
  • Elimination of the 10-13% tariff on all fresh vegetables within 4 years

Seafood

  • Elimination of the 10-14% tariff on abalone within 4 years
  • Elimination of the 15% tariff on rock lobster within 4 years
  • Elimination of the 12% tariff on southern bluefin tuna, salmon, trout and swordfish within 4 years
  • Elimination of the 14% tariff on crabs, oysters, scallops and mussels within 4 years
  • Elimination of the up-to-8% tariffs on prawns within 4 years

Processed Foods

  • Elimination of the 7.5 to 30% tariff on orange juice within 7 years
  • Elimination of the 15% tariff on natural honey
  • Elimination of the 15% tariff on pasta within 4 years
  • Elimination of the 8-10% tariff on chocolate within 4 years
  • Elimination of the 15-25% tariff on canned tomatoes, peaches, pears and apricots within 4 years
  • Elimination of the 15-20% tariff on biscuits and cakes within 4 years


 

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