January 10, 2017
Exports of Australian milk powder to China last year jumped in value by nearly 80 percent.
The value of exports of fresh and chilled boneless beef from Australia has also increased, surging almost 20 percent in the nine months following the signing of the China-Australia Free Trade Agreement (ChAFTA) in December 2015.
Federal Member for Gippsland Darren Chester said the 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.
“Milk powder worth $127 million was exported from Australia during the first nine months of last year after China cut its tariffs following the signing of the agreement.
“The value of Australian fresh and chilled boneless beef exported to China has increased by 18 percent to nearly $50 million over the same period.”
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 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.”