As a result of the China-Australia Free Trade Agreement (ChAFTA), 92.9 per cent of China’s imports of resource, energy and manufacturing products from Australia will enter China duty-free, with 99.9 per cent entering duty-free upon full implementation of ChAFTA in around four years’ time.
Exporters can enjoy greater certainty under the new agreement by locking-in zero tariffs on major resources and energy products, including crude petroleum oils and liquefied natural gas.
Accounting for the impact of tariff reductions on sensitive industries, the 5 per cent tariff on products such as steel will be phased-out within two to four years to allow industry to adjust, which means cheaper steel pipe from China will be readily available to the Australian pipeline industry.
The ChAFTA is a fantastic result for Australia’s resource, energy and manufacturing industries, with over $85 billion worth of such products exported to China last year.
Federal Minister for Trade and Investment Andrew Robb said the landmark agreement will mean Australian industry will be competitive in the region in the near future.
“Australian businesses will have unprecedented access to the world’s second largest economy,” Mr Robb said.
“It greatly enhances our competitive position in key areas such as agriculture, resources and energy, manufacturing exports, services and investment.”
China is Australia’s largest two-way trading partner in goods and services (valued at more than $150 billion in 2013), our largest goods export destination ($95 billion in 2013), and our largest source of goods imports ($47 billion in 2013).
China is Australia’s largest services export market ($7 billion in 2013).
For more information of the ChAFTA visit the Department of Foreign Affairs and Trade website here.