ChAFTA - Benefits for Australian business
The Chinese market is important to businesses and consumers across Australia, including in our states and territories. In 2014, goods trade with China accounted for approximately: 42% of total Western Australian trade, 24% of total New South Wales trade, 22% of total South Australian trade, 21% of total Victorian trade, 20% of total Tasmanian trade, 19% of total Queensland trade and 18% of total Northern Territory trade.
Based on ABS data
The China-Australia Free Trade Agreement (ChAFTA) will help to secure continued growth of our trade relationship with China. ChAFTA will benefit Australian businesses and everyday consumers alike by:
making our goods exports more competitive in the growing Chinese market
through reducing or removing tariffs on Australia’s high-quality goods
reducing the costs of importing from China
by eliminating tariffs on goods imports from China
making it easier for Australian businesses to operate and expand in the growing Chinese market
by securing or improving access for Australian services providers in China
encouraging new investment into Australia to boost our economic growth
by liberalising review thresholds on non-sensitive investment proposals from private Chinese companies.
To find more about the benefits for your business, see our fact sheets or contact ChinaFTA@dfat.gov.au.
How businesses are preparing for ChAFTA entry into force
These are just some of the many businesses already preparing for the entry into force of ChAFTA,
Mildura Fruit Company – Citrus fruits
Mildura Fruit Company (MFC) is one of Australia's leading citrus packers and exporters, marketing a full range of citrus fruits around the world. MFC sources quality citrus from Victoria, New South Wales and South Australia’s horticultural regions. Developing the China market has been a major focus for MFC since it first exported navel oranges to that market in 2011. Mr Perry Hill, General Manager, Mildura Fruit Company, states “since 2011, there has been a great deal of interest in our product from China and we are encouraged by the opportunities this market will present”. While China is a big market for citrus, the price of Australian fruit has been higher than other southern hemisphere competitors, like Chile, who already have existing free trade agreements with China.
“ChAFTA means that tariffs of up to 12% across oranges and mandarins will be eliminated over the next 8 years. This outcome will make our fruit more and more competitive with each tariff cut. We continue to research market opportunities in China to provide better returns for our growers, and look forward to entry into force of ChAFTA.” - Perry Hill, General Manager, Mildura Fruit Company
To find out more about MFC visit: www.mfc.com.au
MtM Automotives – 10% tariff reduction for car parts exports
MtM is a medium-sized Australian-owned company that employs 100 people in Australia and 20 in China. Founded in 1965, MtM specialises in the design and manufacture of complex value added automotive and non-automotive components. The components are designed and manufactured in Melbourne before being exported across the world for installation in cars sold globally, such as the Ford Ranger and Cadillac.
“Under ChAFTA, the 10% tariff on the parts we manufacture in Melbourne and sell to China, will be eliminated over 4 years following entry into force of ChAFTA, this is great news for our business.” - Mark Albert, Managing Director, MtM Automotives
For more information about MtM Automotives visit: www.mtmauto.com
Paspaley – 21% tariff on pearls eliminated within 4 years
Paspaley is a family-owned and run company with an 80-year pearling heritage. Their pearls are grown in the world’s last wild South Sea pearl oyster fishery, located along more than 2500 kilometres of the Australia’s north-west coastline. This carefully regulated resource, together with the ideal pearl farming conditions of north Australia’s pristine coastline, produces Paspaley’s famous pearls. Under ChAFTA, the current tariff of 21% on pearls will be eliminated within 4 years of entry into force, and will make Paspaley even more competitive in the growing Chinese market.
“Approximately 95% of Australia’s pearl production is exported, and in anticipation of increased demand from China following the abolition of the 21% tariff, Paspaley has implemented a strategy to increase awareness of the superlative quality of Australian pearls. This includes pearl education and marketing initiatives developed specifically for the Chinese market.” - James Paspaley, Executive Director, Paspaley Group
To find out more about Paspaley visit: www.paspaleygroup.com
NAB – Banking and financial services
As one of Australia’s leading banking and financial services institutions, National Australia Bank (NAB) has over 12 million customers and a presence in 12 countries worldwide, including China.
ChAFTA will provide new commercial opportunities for Australian banks, insurers and securities firms to help support the continued growth in the natural resources, energy and utilities, and food and agribusiness sectors. As China’s economy shifts, NAB expects greater demand for Australian consumer goods, high-end manufacturing and services.
“ChAFTA places Australian businesses in a unique place to take advantage of the growth potential in the ever-growing Chinese market. NAB was the first Australian bank to establish a presence in China in 1982, and we are proud to be opening a second NAB branch in China, in Beijing this year. We expect the branch will be busy supporting the ever increasing trade flows between Australia and China.” - Angela Mentis, NAB Group Executive Business Banking
For more information about NAB in Asia visit: www.nabasia.com
Are you ready for ChAFTA?
To find more about the benefits to your business, read the fact sheet for your business sector on the DFAT website, or contact ChinaFTA@dfat.gov.au. Want to know more about making your business export ready for ChAFTA? Call Austrade for more advice on 13 28 78, or register to attend an FTA information Seminar.
Do you have a business story to tell? We are looking for business case studies and would like to hear from you, please email us: ChinaFTA@dfat.gov.au.
（Reource：Australian Government Department of Foreign Affairs and Trade http://dfat.gov.au/）