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Business / Economy

ChAFTA already 'delivering' on trade

(Xinhua) Updated: 2016-05-03 08:06

ChAFTA already 'delivering' on trade

A customer selects a bottle of Australian wine at a supermarket in Beijing. [Photo/Getty Images]

The free trade agreement signed by Australia and China late last year is "delivering" for Australian businesses, the nation's minister for trade and investment said on Monday.

Steven Ciobo said the government's decision to sign the historic China-Australia Free Trade Agreement, also known as ChAFTA, had helped boost exports to China substantially.

He said the reduction and in some cases abolition of tariffs on agricultural products had led to a big increase in exports to China, something he said was greatly benefiting Australian businesses and would continue to do so for "years to come".

Among the best-performing items were wine, beef, seafood and vegetables.

"Between January and March 2016, Chinese imports of Australian bottled wine grew more than 60 percent compared with the same period 12 months previously, to reach $160 million, as tariffs were cut twice, from 14 percent to 8.4 percent," Ciobo said.

"With tariffs cut, China's $9 million worth of imports of fresh Australian lobster between January and March were triple those of 12 months ago, and exceeded China's entire 2015 imports of Australian lobster. Milk powder and fresh cherry imports more than doubled."

"Chinese imports of other products-including fresh mangoes, fresh abalone, fresh and frozen boneless beef, various types of cheese, and hay and chaff-grew impressively as ChAFTA cut tariffs and boosted Australia's competitive position."

Ciobo said the encouraging export figures would continue to rise as Asia's middle class grows, with increased demand not only from China, but from Japan and South Korea as well, after Australia signed free trade deals with both them earlier this decade.

"This positions Australia to continue to capitalize on the rapid expansion of Asia's middle classes and their demand for the high-quality produce and other goods we can provide," Ciobo said.

"This means exciting opportunities for Australian businesses and will drive jobs and growth in the Australian economy."

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