January 10, 2017
Exports of live, fresh and chilled abalone from Australia to China last year soared in value by almost 140 percent.
Federal Member for Gippsland Darren Chester said the China-Australia Free Trade Agreement (ChAFTA) had given Gippsland businesses a competitive advantage, driving exports and creating new jobs.
“The China-Australia Free Trade Agreement is the most favourable trade deal China has ever made with a developed economy,” Mr Chester said.
“It’s put Gippsland exporters in a strong position to capitalise on China’s growing middle class and its increasing demand for the high quality goods and services we offer, particularly our clean, green produce.
“Abalone worth $19.5 million was exported from Australia during the first nine months of last year after China signed the trade agreement in December 2015 and cut its tariff on abalone.
“Exports of Australian milk powder to China have jumped in value by almost 80 percent, while the exports of fresh and chilled boneless beef increased by 18 percent.”
Mr Chester said tariffs on a range of Australian goods, including food, wine, cosmetics and skincare products, had again been cut at the start of this month.
“China has now dropped its tariff on abalone to 5.6 percent and on milk powder to 7.5 percent, while the tariff on fresh and chilled boneless beef has fallen from 9.6 to 8.4 percent,” Mr Chester said.
“These further cuts mean Gippsland businesses exporting products like these to China will face a tariff less than half that paid by major competitors like France, the US and Canada.
“And every year, those tariffs will be reduced until they reach zero, building on the competitive edge the free trade agreement is already giving to our local exporters.
“The Coalition Government is pursuing an ambitious trade agenda to create more opportunities for Australian producers, including our world-class producers in Gippsland, to expand and employ more locals.”