China

92
Country starter pack
Business practicalities in China
ChAFTA - an overview for Australian goods exporters
The benefits for Australians exporting goods into China are extensive and range from removal or
reduction of tariffs, larger quotas for certain restricted items and streamlined custom processes.
Overall, 85 per cent of tariffs on Australian goods exported to China will be eliminated at the initial
enforcement of ChAFTA and 95 per cent on its full implementation. Essentially, the negotiated
terms have provided Australia with a strong competitive advantage in the Chinese marketplace over
some of our leading competitors such as the USA, Canada, the EU and New Zealand, particularly
for our agriculture and processed food sector.
BEEF
The removal
of tariffs of
12-25%
over nine years.
Australia is China’s primary supplier of beef, having a 57% market share
and a strong reputation for quality. Gradual complete removal of up to
25% tariffs will assist Australia to have a competitive advantage over other
large beef exporters. By 2030, the total benefits for the Australian beef
industry is estimated to be $3.3 billion.
SHEEP MEAT
The removal
of tariffs of
12-23%
over eight years.
Like beef, China’s demand for sheepmeat is rapidly growing with the Chinese
market - Australia’s most important sheepmeat market valued at $446
million in 2013-14. Elimination of applicable tariffs will assist Australia to
compete with China’s largest supplier – New Zealand, who in 2016 – due to
their FTA – will have duty-free lamb entering the Chinese market.
With the removal of tariffs, annual growth for the Australian sheepmeat
sector is expected to be more than $150 million by 2024.
SEAFOOD
DAIRY
The removal of
tariffs including
5 & 15%
respectively on rock
lobster and abalone,
over four years.
10-19%
tariff removal
across all Australian
dairy products
within 11 years.
The removals of tariffs on Australian seafood exports to China will create
extensive opportunities for Australia with exports currently valued at $37
million (2013-14).
Key outcomes include the eliminations of the following tariffs on Australian
seafood within four years:
• 15% on rock lobster
• 14% on crabs, oysters, scallops and mussels
• 12% on southern bluefin tuna, salmon, trout and swordfish
• 10-14% on abalone
• 8% on prawns.
China is Australia’s largest market for dairy exports. Nevertheless, the
market is fiercely competitive with key suppliers such as New Zealand, the
EU and the US. The elimination of tariffs across all dairy products within 11
years will assist Australia to increase their current market share valued at
$443 million 2013-14.
The following tariff eliminations are primary outcomes for Australia’s dairy industry:
• 15% on infant formula (within four years)
• 15% on liquid milk (within nine years)
• 10-19% on ice cream, lactose, casein and milk albumins (within four years)
• 10-15% on cheese, butter and yoghurt (within nine years)
• 10% on milk powders (within 11 years).
WINE
Tariff removal of
14-20%
within four years.
In 2013-14, Australia’s third largest export market for wine was China –
worth $942 million. The Chinese overall market has doubled in recent
years, now valued at over $1.6 billion. The removal of 14-20% tariffs
on Australian wine exports under ChAFTA within four years will enable
Australia to compete with Chile and New Zealand – both of which under
their FTAs, have preferential wine access to China.