Industry groups have welcomed the ratification of the China-Australia Free Trade Agreement (FTA). Australian trade minister Andrew Robb joined his Chinese counterpart Gao Hucheng in confirming the trade pact on Wednesday (17 June), over a decade after negotiations commenced.
Under the terms of the agreement, all tariffs on Australian citrus exports to the People’s Republic will be eliminated over an eight-year period. Orange tariffs are currently at 11 per cent, while mandarin tariffs are at 12 per cent. China is the citrus industry’s fastest growing and highest valued export market, with exports generating A$30m in 2014.
“The reduction in tariffs will ease the pressure on citrus growers and allow them to focus on producing the sweet, safe and healthy citrus Chinese consumers love,” explained Judith Damiani, chief executive of peak industry body Citrus Australia.
Apple of Australian industry’s eye
The FTA will also see the current 10 per cent tariff on Australian apples eliminated over a four-year period. Peak industry body Apple & Pear Australia (APAL) has voiced its support for the move, which will allow Australian suppliers to compete on a more level playing ground with rival Southern Hemisphere producers.
“We commend the government on the pending China FTA that will put Australian apples on par with our strongest competitors, Chile and New Zealand, both of whom secured FTA’s with China some years ago,” said APAL’s industry services manager, Annie Farrow. “Australian apples are automatically 10 per cent more expensive than apples from Chile or New Zealand. This just adds to the burden because we are already a high cost producer because we pay much higher wage rates than in competing nations.”
However, Farrow was quick to point out that the FTA did not pave a golden pathway to the Chinese market for all Australian growers and exporters. Tasmania is currently the only Australian state with direct access to the Asian nation due to its fruit fly free status. “While the FTA is a terrific achievement, APAL continues to work hard to secure access for mainland apples into China,” Farrow said.
Campaign continues
Market access continues to be a major stumbling block for many Australian fresh produce sectors wishing to access the Chinese market. Australian mangoes, table grapes and citrus exports have all been cleared for export to the People Republic, although suppliers must adhere to stringent import protocols for each of these categories. Similar to apples, Tasmania is the only state with direct airfreight access into China for cherries, although some mainland cherry suppliers have sent trial shipments under a protocol that allows in-transit cold sterilisation via seafreight.
While the value of Australia’s direct trade into the Chinese market for fresh fruit topped A$50m over the last 12 months, Farrow said there is a great urgency amongst industry to bolster export opportunities.
“After stonefruit, Australian mainland apples are next in the queue (for market access),” Farrow explained. “Chinese officials will want to undertake a pest risk analysis and assess how mainland growers manage pests and diseases of concern to them. We are urging the government to speed up the negotiation process because we first sought access in 2006 (at the same time as stonefruit) and eight years later we have not progressed.”
