NAR Nar Goon dairy farmer and Australian Dairy Industry Council chairman Noel Campbell has welcomed the official signing of the China-Australia Free Trade Agreement.
Mr Campbell said the treaty was a further positive step toward securing improved trade liberalisation with Australia’s largest dairy export market.
“China is a significant dairy market for Australia and currently ranks first by value with $501 million worth of exports in 2013-’14,” Mr Campbell said.
“This agreement allows our industry to further develop its long-term relationship with China to the mutual benefits of both countries.”
“It is a truly free trade deal with tariffs coming down to zero on key dairy products such as infant nutrition, cheese, milk powder and packaged milk,” he said.
The FTA places Australia on a more level playing field with key commercial rivals who already have a FTA with China, but in order to receive the benefits the deal must be ratified.
“The dairy industry is keen to see the agreement ratified this year to ensure the benefits start to reach both countries’ economies in this calendar year,” Mr Campbell said.
McMillan MP Russell Broadbent said the landmark deal heralds the start of an exciting future for the region’s agricultural sector.
“This is the most positive the dairy industry has looked in 50 years and our local producers – like Fonterra at Darnum, Burra Foods at Korumburra and Murray Goulburn at Leongatha – are already well advanced in their expansion plans for the Asian market,” he said.
Mr Broadbent said the China-Australia Free Trade Agreement, which was signed by the Minister for Trade and Investment Andrew Robb and Chinese Commerce Minister Gao Hucheng, provides unprecedented access to what is already the nation’s top overseas agricultural market.
Under the deal more than 85 per cent of Australia’s goods exports to China will enter that country carrying no cost penalty and this will rise to 93 per cent after four years and 95 per cent when agreement is fully operational.
“This region has the chance to boom on the back of this agreement, with those exporting dairy products to China the most obvious initial beneficiaries,” Mr Broadbent said.
“This region’s milk is second to none and it’s known the world over for its unrivalled purity.
“Now that Australia has established a new trade agreement with our largest Asian neighbour, dairy tariffs of up to 20 per cent will be eliminated within four to 11 years.”
