Australian farmers exporting overseas will be better off as tariffs are slashed or abolished under the Trans Pacific Partnership and the China-Australia Free Trade Agreement (ChAFTA), according to Minister for Agriculture David Littleproud.
“Tariffs our on our farm produce going into China will be largely eliminated on January 1,” Mr Littleproud said.
“Key exports including wine, most fruit and vegetables, seafood and some dairy will no longer cop a tariff in China, which means our produce will be more affordable for Chinese consumers.
Mr Littleproud said ChAFTA had contributed to significant growth in exports in the past 12 months.
He said beef exports increased 34.5 per cent to $1 billion, wine exports increased 65.1pc to $982.7 million, dairy exports increased 38pc to $818.8 million, and navel orange exports increased 57.5pc to $87.2 million.
The Comprehensive and Progressive Agreement for Trans Pacific Partnership (CPTPP) came into force on December 30 2018.
“Just some of the benefits are our farmers will sell more dairy into Canada through a new quota, more rice into Japan and no longer face tariffs on sheepmeat or pork into Mexico,” Mr Littleproud said.
“We’re giving our farmers more options overseas so they can sell where they choose - not just to the supermarkets here in Australia.
“Australia exported more than $12.5 billion of agricultural produce to CPTPP countries last financial year, representing almost a quarter of Australia’s total ag exports.”
On December 30, 2018 reductions associated with the entry came into play, followed by the annual tariff reduction rate on January 1, 2019 in those countries which ratified the CPTPP (Japan's second tariff cut will take effect on April 1, 2019).
Mr Littleproud said Australia's ratification of the CPTPP meant Australian exporters benefited from immediate tariff cuts on entry into force of the CPTPP on December 30, 2018 for Canada, Japan, Mexico, New Zealand and Singapore, and further tariff cuts into Canada, Mexico, New Zealand and Singapore on January 1, 2019.
Australian exporters will benefit from two tariff cuts for Vietnam on January 14, 2019 (when the CPTPP enters into force for Vietnam).
