Farmers eye China trade deal

THE historic free trade agreement signed with China earlier this week will have far-reaching economic benefits for the region, Maranoa MP Bruce Scott says.
The Federal LNP member, who also sits on the Foreign Affairs Defence and Trade Joint Standing Committee and is the Trade Sub-Committee chairman, said Monday’s announcement of a trade agreement with China cemented Australia’s positioning in the world’s export market.
“Today’s completion of negotiations for a China-Australia trade agreement is an absolute win for the Maranoa – whether it’s horticulture, wine, dairy, beef, sheep, coal or household goods,” Mr Scott said.
“This means that Maranoa businesses will have unprecedented access to the world’s second largest economy. It greatly enhances our competitive position in key areas such as agriculture, resources and energy, manufacturing exports, services and investment.
“China is our biggest trading partner with Australian farm exports doubling in five years to be valued at more than $7 billion in 2013.”
He said significantly, tariffs will be abolished for Australia’s $13 billion dairy industry, beef and sheep farmers will also gain from the abolition of tarrifs ranging from 12-25 per cent and all tariffs on Australian horticulture will be eliminated.
Tariffs on Australian wine of 14-30 per cent will go within four years.
“Tariffs will also be removed on a range of Australian resources and energy products, including the tariffs on coking coal which will be removed on day one and the tariff on thermal coal will be phased out over two years,” Mr Scott said.
“Households and businesses will also reap the benefits of cheaper goods and components from China such as vehicles, household goods, electronics and clothing, placing downward pressure on the cost of living and the cost of doing business.
“More than 85 per cent of Australian goods exports will be tariff free upon entry into force, rising to 93 per cent in four years. Some of these goods are currently subject to tariffs of up to 40 per cent.
“When the trade agreement is fully implemented, 95 per cent of Australian goods exports to China will be tariff free.”