Australian farmers and businesses will continue to reap the benefits of our free trade agreements with new tariff cuts kicking-off today in our major export markets.
Federal Trade Minister Simon Birmingham said the latest round of tariff cuts under our trade agreements with China and South Korea as well as the Trans-Pacific Partnership (TPP-11) would build on the huge benefits these major agreements have already delivered for our economy.
“From today, Australian exporters will get more tariff reductions and better access into China and Korea, as well Japan, Mexico and Canada under the TPP-11,” Minister Birmingham said.
“These latest tariff cuts will deliver an additional competitive edge for our exporters into these key markets, creating more export opportunities and more local jobs around our country.
“For example, tariffs rates into China on milk powders, goat meat, oranges, shelled almonds and skin care products will all tumble. That means over 7,800 tariff lines have been eliminated under the China-Australia Free Trade Agreement.
“Our lamb producers are also big winners with further tariff reductions into China and South Korea kicking off today. Lamb exports into these two markets are now worth a combined $1 billion and I expect this figure to continue to skyrocket thanks to these further tariff reductions.
“Our beef exporters will also enjoy a further two per cent reduction of tariffs into Mexico, allowing them to continue to make inroads into the Mexican market which has already seen exports increase by 800 per cent over the last year.
“Our Government has done the heavy lifting and delivered these deals and our farmers and businesses continue to reap the benefits.
“Continuing to expand opportunities for Australian exporters is a key pillar of our economic plan and builds upon successes that have already fuelled record levels of exports and a record trade surplus.”
This is the sixth round of tariff cuts under the China-Australia Free Trade Agreement and seventh round under the Korea-Australia Free Trade Agreement. This is the third round of tariff cuts under the TPP-11 since it came into effect on 30 December 2018.
China is our largest trading partner with goods exports for 2018-19 totalling $134.7 billion. South Korea is our fourth largest trading partner with goods exports worth 25.6 billion in 2018-19, an increase of 18.6 per cent on the previous year.
More information on these tariff cuts can be found on the FTA Portal (ftaportal.dfat.gov.au).