Citrus growers and the mainland of Australia will feel the benefit of the new FTA with China more slowly, because only certain horticultural exports from certain areas are cleared of pests, and only cherries and apples from Tasmania are allowed in to China at present, now that the agreement is signed, according to the Australian Horticultural Exporters Association Chair David Minnis. The impetus is now there for other commodity growers to begin exporting to China, but growers and exporters need to be aware that the FTA is separate from import country quarantine requirements, which still have to be met, Mr Minnis cautioned.
The price to legally ship fresh fruits and vegetables directly to China, instead of entering the country indirectly via Hong Kong, will drop, Mr Minnis added. “The differential between so-called ‘grey trade’ and legal trade will widen as the full impact of the FTA is felt on the trade. For example, table grapes shipped 300 containers of 17.5 tonnes each legally last year as it is. The fact we have an FTA now means that numbers will only grow,” he said. Trade with China for horticultural products has already reached $83 million in 2013, up from $13 million in 2008.
The agreement, ten years in the making, was signed at lunchtime today in Canberra, with Prime Minister Tony Abbott, Mr Gao Hucheng Minister of Commerce in the Government of the People’s Republic of China, and Australian Minister for Trade Andrew Robb present. Mr Minnis has called it a ‘good news story’, which will allow Australian growers and exporters to catch up to foreign competitors New Zealand and Chile, countries which both have existing agreements with China and zero tariffs on exports to the Asian trading giant. “What we’re pleased about is the duty of around 13% which will come down in a relatively short time frame, four years,” Mr Minnis continued. “Our agreement was harder to negotiate than those of New Zealand and Chile because we have such a mixed, diverse economy. New Zealand, for example, is almost one hundred percent agricultural in terms of its exports.” Australia can offer quality fresh tasting produce, shorter delivery times and a longer shelf life than competitors Chile and Peru, for example, Mr Minnis added. “We certainly welcome the agreement after waiting ten years, and we can actually do some catching up.”
Under the China FTA, all tariffs on horticultural products will be eliminated. Tony Abbott told media that the deal will see "literally billions of dollars, thousands, many hundreds of thousands of jobs, and will underpin a lot of our prosperity in the years ahead."
Key outcomes from the agreement include:
- Elimination of the 10 to 25 per cent tariff on macadamia nuts, almonds, walnuts, pistachios and all other nuts within 4 years.
- Elimination of the 11 to 30 per cent tariff on oranges, mandarins, lemons and all other citrus fruits within 8 years.
- Elimination of the 10 to 30 per cent tariff on all other fruit within 4 years.
- Elimination of the 10 to 13 per cent tariff on all fresh vegetables within 4 years.
For more information:
Visit the AHEA website: www.horticulture.com.au