#China is Australia’s largest trading partner and with many tariffs on #Australian #agricultural produce set to dial back to zero by 2019 the future for trade and inbound investment looks bright.
China buys more of Australia’s agricultural produce than any other country. In 2016, this market was worth around $10 billion to Australian farmers and the broader agricultural sector. ChAFTA (the Free Trade Agreement struck between Australia and China late 2015) provides Australia with an advantage over our major agricultural competitors, including the United States, Canada and the European Union. It also counters the advantages Chile and New Zealand currently enjoy through their FTAs with China.
In agriculture, ChAFTA completely eliminated remaining tariffs on Australian barley and sorghum on 20 December 2015, and will see a rapid tariff reduction on other agriculture exports, including seafood, sheepmeat and a variety of horticulture.
Other key agriculture outcomes include:
- Wine: tariffs of 14 to 20 per cent are being eliminated by 1 January 2019
- Dairy: tariffs up to 20 per cent are being eliminated by 1 January 2026
- Beef: tariffs of 12 to 25 per cent are being eliminated by 1 January 2024
- Wool: a new Australia-only duty-free quota (which commenced on 1 January 2016), in addition to
continued access to China’s WTO wool quota.
To download a comprehensive (non-official) ChAFTA tariff schedule please >> click here.