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MEDIA RELEASE Red meat industry welcomes ChAFTA entry into force
The Australian red meat and livestock industry has welcomed the news that the China-Australia Free Trade Agreement (ChAFTA) will enter into force (EIF) on 20 December 2015.
EIF of ChAFTA will see the first tariff cuts delivered across all red meat and livestock tariff lines – with the second tariff cuts due on 1 January 2016 (see table below).
“The quick succession of initial tariff cuts will greatly improve the competitiveness of Australian product – particularly as sheepmeat products from New Zealand will be duty free from 1 January 2016, and other beef suppliers have recently secured improved access,” Chairman of the Australian Red Meat ChAFTA Taskforce David Larkin said.
The current tariffs imposed on Australian beef, sheepmeat and co-products exported to China represent an annual tax on the supply chain in excess of $800 million. The gradual removal of this cost burden will positively impact the profitability of Australian cattle and sheep producers, processors and exporters, as well as alleviate the inflated prices paid for Australian red meat and associated products by Chinese customers and consumers.
Once fully implemented ChAFTA has the potential to boost the gross value of beef production by $270 million annually by 2024. Out to 2030, the total benefits for beef will approach $3.3 billion. For the sheepmeat sector, the potential benefits are more than $150 million each year by 2024 – with the value over the next 16 years being in excess of $1.8 billion.
As China is also a destination for nearly 90% of Australia’s sheepskin exports and 80% of cattle hides, elimination of these tariffs, as well as those on offal, will add $436 million a year by 2024 across both beef and sheepmeat – and out to 2030, these benefits could total $6 billion.
Mr Larkin thanked the Minister for Trade and Investment, DFAT officials in Canberra and the Australian Embassy in Beijing for their combined efforts in achieving entry into force of the ChAFTA prior to the end of 2015.
“The benefits flowing from ChAFTA will add significant value to the Australian red meat and livestock industry and complement the gains derived from the other FTAs Australia has concluded to date,” Mr Larkin said.
Indicative ChAFTA tariff reductions
| Current tariff (%) | 21 Dec 2015 | 1 Jan 2016 | 1 Jan 2017 | 1 Jan 2018 | 1 Jan 2019 | 1 Jan 2020 | 1 Jan 2021 | 1 Jan 2022 | 1 Jan 2023 | 1 Jan 2024 | |
| Live animals | 10 | 8 | 6 | 4 | 2 | 0 | – | – | – | – | – |
| Beef | 12 | 10.8 | 9.6 | 8.4 | 7.2 | 6 | 4.8 | 3.6 | 2.4 | 1.2 | 0 |
| Sheepmeat | 15 | 13.3 | 11.7 | 10 | 8.3 | 6.7 | 5 | 3.3 | 1.7 | 0 | – |
| Offal | 12 | 10.5 | 9 | 7.5 | 6 | 4.5 | 3 | 1.5 | 0 | – | – |
Source: http://dfat.gov.au/trade/agreements/chafta/official-documents/Pages/official-documents.aspx
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China-Australia free trade agreement
Factsheet: Agriculture and Processed Food
China is Australia’s largest agriculture, forestry and fisheries export market, worth $8 billion in 2014, up from $5 billion in 2010.
China’s demand for high-quality agriculture and food products is growing rapidly. The Australian Bureau of Agriculture and Resource Economics and Sciences (ABARES) predicts that China will account for 43 per cent of global growth in agricultural demand by 2050.
Until now, the absence of a bilateral FTA with China has meant Australian producers and exporters have faced significant tariffs on agricultural products and have been at a competitive disadvantage to countries that have an FTA with China – including New Zealand, Chile and ASEAN. The China-Australia Free Trade Agreement (ChAFTA) addresses this issue, and also gives Australia a significant advantage over larger players, such as the US, EU and Canada.
ChAFTA will also provide a base for further liberalisation through a commitment to review outcomes three years after entry into force.
Key Outcomes
Beef
China’s demand for high-quality beef is growing rapidly, driven by a growing middle class. The OECD assesses that beef will be the fastest-growing import sector in China.
In 2014 Australian beef exports to China totalled 128,000 tonnes, worth $655 million.
Australia – already China’s dominant supplier with 50 per cent of the import market and with an outstanding reputation for quality – will be ideally placed to capitalise on this growing demand, with ChAFTA delivering a real competitive advantage over other large beef exporters.
Key outcomes include:
Elimination of tariffs on beef imports (currently ranging from 12-25 per cent) within 9 years.
Elimination of the 12 per cent tariff on beef offal within 4-7 years.
China has retained the right to apply a discretionary safeguard on beef (not including offal) if imports exceed a set annual “safeguard” trigger volume. The trigger starts at 170,000 tonnes – 10 per cent above Australia’s historic calendar year peak export levels to China – and grows over time. There is also a set review process to consider removal of the safeguard.
Dairy
China is Australia’s second largest market for dairy exports. This market is expanding rapidly with exports worth $347 million in 2014. Australia’s main competitors are New Zealand, the EU and the US. Currently, New Zealand’s dairy produce receives a considerable tariff advantage under its bilateral FTA with China.
ChAFTA will progressively close this gap; tariffs will be progressively eliminated across all dairy products.
Crucially, New Zealand’s FTA with China contains restrictive safeguard measures on a wide range of dairy products, including liquid milk, cheese, butter and all milk powders (where China raises the tariff back to the higher normal rate when New Zealand exports exceed a certain volume). By contrast, under ChAFTA, Australia will only face a discretionary safeguard on whole milk powders, with the safeguard trigger volume set well above current trade levels and indexed to grow annually. For all other dairy products, Australia will receive unlimited preferential access.
Key outcomes under ChAFTA include:
Elimination of the 15 per cent tariff on infant formula within 4 years.
Elimination of the 10 – 19 per cent tariff on ice cream, lactose, casein and milk albumins within 4 years.
Elimination of the 15 per cent tariff on liquid milk within 9 years.
Elimination of the 10 to 15 per cent tariff on cheese, butter and yogurt within 9 years.
Elimination of the 10 per cent tariff on milk powders within 11 years.
Sheep and goat meat
China’s demand for sheepmeat is also growing rapidly. In 2014, total Chinese imports of sheepmeat reached 281,000 tonnes, up from 124,000 tonnes in 2012. New Zealand has traditionally been China’s largest supplier and enjoys a competitive advantage over Australian exporters due to its FTA. New Zealand lamb now only faces tariffs ranging from 2.7 – 5.1 per cent and will be duty-free by 2016.
In 2014, Australian exports to China were worth $425 million (108,000 tonnes), up 10 per cent on 2013 exports at $385 million. China is already Australia’s second-most important sheepmeat export destination, despite China imposing tariffs ranging from 12 – 23 per cent.
With the progressive elimination of tariffs on sheepmeat, ChAFTA positions Australian farmers to further build trade and increase profitability.
Key outcomes include:
Elimination of the tariffs on sheepmeat (currently ranging from 12 to 23 per cent) within 8 years.
Elimination of the 18 per cent tariff on frozen sheepmeat offal within 7 years
Elimination of the 20 per cent tariff on goat meat within 8 years.
Wool
China accounts for 70 per cent of Australia’s wool exports. Australia is China’s largest source of imported wool, with a 63 per cent market share, ahead of New Zealand (14 per cent).
China already provides virtually duty-free access on wool, under a large WTO tariff rate quota of 287,000 tonnes. Tariffs within this quota are set at just 1 per cent. While China has the right to impose a 38 per cent tariff outside the quota, traditionally it has not done this as wool is an important input into domestic manufacturing.
Under ChAFTA, in addition to the existing WTO quota, Australia will receive an exclusive duty-free Country Specific Quota of 30,000 tonnes clean wool (approximately 43,000 tonnes greasy wool). This volume will grow by 5 per cent each year to almost 45,000 tonnes clean (approximately 64,300 tonnes greasy) by 2024, all at duty-free rates. This is the best outcome China has provided in any of its FTAs to date.
Pork
Tariffs of up to 20 per cent on pork eliminated within 4 years.
Hides, skins and leather
Hides and skins are a crucial agricultural export to China worth $910 million in 2014. This is more than ten times our next largest market (Italy). Currently hides and skins face tariffs of 5 to 14 per cent.
Under ChAFTA, all tariffs on hides, skins and leather will be eliminated. Key outcomes include:
Elimination of the 7 per cent tariff on sheep skins over 4 years – exports worth $342 million in 2014.
Elimination of the 5 to 8.4 per cent tariffs on cow hides and skins between 2 and 7 years – imports worth around $518 million.
Elimination of the 9 per cent tariff on kangaroo hides and skins and the 14 per cent tariff on kangaroo leather over 4 years.
Elimination of tariffs between 5 and 14 per cent on a range of other leather products either on day one of the Agreement or over 4 years.
Wine and spirits
China’s wine import market is growing dramatically, almost doubling in size since 2010 to be worth over $1.7 billion in 2014.
China is Australia’s third-largest export market for wine, worth $211 million in 2014. However, Australia competes with New Zealand and Chile, both of which have preferential wine access under their FTAs with China. China’s wine imports from Chile have increased almost seven-fold since its FTA with China entered into force in 2006.
Under ChAFTA, tariffs of 14 to 20 per cent on Australian wine imports will be eliminated within 4 years
Tariffs of up to 65 per cent on other alcoholic beverages and spirits will be eliminated within 4 years.
Horticulture
China is a rapidly growing market for Australian horticultural products, with exports worth $56 million in 2014 – up from $13 million in 2010. However, China applies some of its highest tariffs on horticultural products.
Under ChAFTA, all tariffs on horticultural products will be progressively eliminated. Key outcomes include:
Elimination of the 10 to 25 per cent tariff on macadamia nuts, almonds, walnuts, pistachios and all other nuts within 4 years.
Elimination of the 11 to 30 per cent tariff on oranges, mandarins, lemons and all other citrus fruits within 8 years.
Elimination of the 10 to 30 per cent tariff on all other fruit within 4 years.
Elimination of the 10 to 13 per cent tariff on all fresh vegetables within 4 years.
Separate to the FTA negotiations, Australia already enjoys quarantine access protocols for export into China for many horticultural products, and will be able to take immediate advantage of tariff reductions for a range of products including citrus, grapes, almonds, macadamias, mangoes and some cherries.
There are no changes to Australia’s domestic science and risk-based quarantine measures as a result of ChAFTA.
ChAFTA facilitates customs processing of perishable goods, including horticulture products.
Barley, sorghum and other grains
Australia’s trade to China in barley and sorghum is significant and growing rapidly. In 2014, barley exports were worth more than $1 billion, up more than 330 per cent since 2010, while sorghum exports were worth $264 million. Key outcomes under ChAFTA include:
Immediate elimination of the 3 per cent tariff on barley and 2 per cent tariff on sorghum.
Elimination over 4 years of the 15 per cent tariff on cotton seeds – exports worth $21 million in 2014.
Elimination of the 10 per cent tariff on malt and wheat gluten within 4 years.
Immediate elimination of the 2 per cent tariff on oats, buckwheat, millet and quinoa.
Elimination of tariffs of up to 7 per cent on pulses within 4 years.
Seafood
Australian seafood exports to China totalled $35 million in 2014. Australian abalone and rock lobster are the leading Australian premium seafood exports to China, with exports worth $15 million and $2 million, respectively, in 2014. Tariffs on all Australian seafood exports will be eliminated progressively over 4 years.
ChAFTA will create a huge opportunity for Australian seafood in the Chinese market. Since the China – New Zealand Free Trade Agreement came into force, China’s imports of seafood from New Zealand have quadrupled (to $402 million). Key outcomes under ChAFTA include:
Elimination of the 10-14 per cent tariff on abalone within 4 years.
Elimination of the 15 per cent tariff on rock lobster within 4 years.
Elimination of the 12 per cent tariff on southern bluefin tuna, salmon, trout and swordfish within 4 years.
Elimination of the 14 per cent tariff on crabs, oysters, scallops and mussels within 4 years.
Elimination of the up-to-8 per cent tariffs on prawns within 4 years.
Processed foods
Changing consumption habits and Australia’s reputation for high-quality produce also provide great opportunities in the processed food sector. Key outcomes under ChAFTA include:
Elimination of the 7.5 to 30 per cent tariff on orange juice within 7 years, and elimination of tariffs of up to 30 per cent on other fruit juices within 4 years.
Elimination of the 15 per cent tariff on natural honey, and the up-to-25 per cent tariff on honey-related products, within 4 years.
Elimination of the 15 per cent tariff on pasta within 4 years.
Elimination of the 8 to 10 per cent tariff on chocolate within 4 years.
Elimination of the 15 to 25 per cent tariff on canned tomatoes, peaches, pears and apricots within 4 years.
Elimination of the 15 to 20 per cent tariff on biscuits and cakes within 4 years.
Live animals
China is Australia’s second largest market for live animals, worth $254 million in 2014. It is an important and growing market, with exports doubling from $117 million in 2010. Pure-bred cattle currently dominate Australia’s live animal exports to China, worth $206 million in 2014. Key outcomes under ChAFTA include:
Elimination of all tariffs on live animal exports within four years, including the 10 per cent tariff on live cattle (pure-bred breeding cattle already enter China duty free).
China’s WTO quotas and related products
Under China’s WTO accession protocol, China applies quotas on imports of rice, wheat, maize, sugar and vegetable oils. These are open to all WTO members, including Australia. In-quota tariffs are set at only 1 per cent for wool, rice, wheat, cotton and maize; 8 to 10 per cent for vegetable oils and related products and 15 per cent for sugar. Imports of vegetable oils are no longer administered through a quota.
Australia’s exports of these products enter China under existing WTO arrangements. Arguing that these products are key staples and already enjoy virtually duty-free access, China has not further liberalised these products in any of its FTAs to date. Accordingly, China has not provided preferential access to Australia under ChAFTA.
However China has agreed to a built-in review process three years after the Agreement enters into force, including on market access.
China’s products into Australia
Consistent with all of Australia’s FTAs, Australia will eliminate remaining tariffs on agricultural and processed food imports from China. To allow adjustment by domestic industry, the elimination of some of these tariffs, in particular on a range of canned fruit products and peanuts, will be phased in over 3 years.
China-Australia Free Trade Agreement to enter into force
9 December 2015
The Benefits of the China Australia Free Trade Agreement to start on December 20th!
The substantial benefits secured through the historic China Australia Free Trade Agreement (ChAFTA) are set to start flowing from 20 December, the Minister for Trade and Investment Andrew Robb has today announced.
This follows a critical ‘exchange of notes’ in Sydney between Australia’s Ambassador-designate to China Jan Adams and Chinese Ambassador Ma Zhaoxu which formally confirms that both Australia and China have now fulfilled their respective domestic requirements to enable ChAFTA to enter into force.
Mr Robb said this was a most significant moment as the government’s key objective – despite a very tight timeframe – was to see ChAFTA operational before the end of 2015.
“This will deliver a very material early harvest for our exporters in the form of two rounds of annual tariff cuts in quick succession. The first round of tariff cuts will occur on 20 December followed by a second round on 1 January 2016,” he said.
“This will save our exporters hundreds-of-millions-of-dollars in extra tariff payments next year alone compared to if entry into force had been delayed until sometime in 2016. The National Farmers’ Federation estimates our agriculture sector alone is set to save around $300 million.”
Mr Robb said this outcome would immediately enhance our competitive position in the world’s second biggest economy which will be good for growth and job creation. Our dairy industry for example expects ChAFTA to result in 600-700 extra dairy jobs in the first year alone.
“This is the most favourable trade deal that China has done with any developed economy and it will put us in the box seat to further capitalise on China’s rising middle class and increasing demand for the types of high quality goods and services that Australia can and does provide,” Mr Robb said.
On entry into force, more than 86 per cent of Australia’s goods exports to China (worth more than $86 billion in 2014) will enter duty free, rising to 96 per cent when ChAFTA is fully implemented.
Australian services suppliers and investors will also be able to reap the rewards of new and improved levels of access in China from 20 December. Consumers will also benefit from more affordable Chinese goods such as electronics, clothing and other household items as tariffs are eliminated.
ChAFTA’s entry into force rounds out a powerful trifecta of trade deals that the government has sealed with three of our four largest export markets – China, Japan and Korea – covering 49 per cent of our exports.
Together with the Trans-Pacific Partnership Agreement (TPP), these agreements will provide unprecedented access for innovative Australian enterprises to the world’s largest and most dynamic markets.
“In this critical post-mining boom period, the government has very deliberately pursued an aggressive trade and investment agenda to support the transition of our economy by adding diversity to what we do,” Mr Robb said.
Businesses can search for product-specific ChAFTA tariff information and guidance on rules of origin through an innovative new FTA Portal. A guide for exporting and importing goods, providing step-by-step advice ahead of entry into force, is also available.
source:http://trademinister.gov.au/releases/Pages/2015/ar_mr_151209.aspx
AARTD越南分公司一周岁啦！AARTD Vietnam Office turn 1 year!
我们AARTD越南分公司迎来一周年的生日了！
祝贺我们越南的团队生日快乐！
感谢美丽的姑娘们在这一年里所做的努力，期待你们做出更加辉煌的成绩！
Congratulations to our Team in Vietnam! One year old this week!
Thanks for your great work during our 1st Year and looking forward to many more to come!
Vietnam expands agro-fisheries market via Singapore
Singapore is a strategic gateway for Vietnamese agriculture and seafood exporters to make inroads into other markets, experts commented at a trade exchange programme in Singapore on November 21.The event drew nearly a hundred of businesses from the two countries.
Deputy head of the Ministry of Industry and Trade’s Export-Import Department Tran Thanh Hai highlighted rice, coffee, tea, vegetable, fruits, fine art and handicraft products as strengths of Vietnam.Meanwhile, Singapore has advantages in processing, packaging, and increasing product values as well as management, marketing and broad relations with foreign partners, he noted.
Vietnam-Singapore trade posted an annual average growth of 12 percent over the past three years.Vietnam grossed 2.93 billion USD from exports to Singapore in 2014, a yearly increase of 10.4 percent, while importing 6.83 billion USD worth of goods in the period, a year-on-year rise of 20 percent.
In the past ten months of 2015, Vietnam’s exports to Singapore expanded by 30 percent year on year to 3.1 billion USD.
Michael Boddington from Asian Agribusiness Recruitment Training Development (AARTD) has been involved in agribusiness in Asia since 2000. AARTD has office both in Vietnam Ho Chi Minh City and China Beijing. So AARTD has a thorough understanding of the Vietnam and China agribusiness industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email: michael@aartd.com
Source: http://en.vietnamplus.vn/vietnam-expands-agrofisheries-market-via-singapore/85087.vnp
Cargill to expand investment in Vietnam
Talking to the press in Ho Chi Minh City on November 18, the US group’s Chairman David McLennan said plans for new factories demonstrate the group’s commitment to the country.
Cargill is constructing its 12th animal feed plant in Vietnam with a total investment capital of 30 million USD in the southern province of Binh Duong. The factory, with a capacity of 260,000 tonnes a year, is expected to go into operation in the first quarter of 2017.
The group has invested 180 million USD to develop its animal feed mills system with a total capacity of 1.3 million tonnes a year in the country since 1995.
Additionally, the groups signed a 10 million USD deal with the Sai Gon International Terminals Vietnam (SITV) to build warehouse in Phu My.
Besides expanding its investment in Vietnam, Cargill pledges to support farming households and small farms by providing them with training in animal breeding, thus preparing them for upcoming free trade agreements to which Vietnam is a member, including the Trans-Pacific-Partnership (TPP) agreement.
Michael Boddington from Asian Agribusiness Recruitment Training Development (AARTD) has been involved in agribusiness in Asia since 2000. AARTD has office both in Vietnam Ho Chi Minh City and China Beijing. So AARTD has a thorough understanding of the Vietnam and China agribusiness industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email: michael@aartd.com
Source: http://en.vietnamplus.vn/cargill-to-expand-investment-in-vietnam/84936.vnp
Vietnam: Tra fish exports to China grow
Viet Nam’s tra fish exports to China and Hong Kong (China) recorded strong growth in the first 10 months of this year, hitting US$122 million, representing a year-on-year increase of nearly 50 per cent.
With this pace, it is forecast that China will become one of the three largest importers of Vietnamese tra fish apart from the US and Europe, said Deputy Chairman and General Secretary of the Viet Nam Pangasius Association Vo Hung Dung.
In the January-October period, Viet Nam’s tra fish export value reached over $1.2 billion, 9.6 per cent lower than that of the same period last year due to tumble in shipments to the US and Europe.
The association will work to promote aquaculture models under the Vietnamese Good Agricultural Practices (VietGAP) standards and strictly implement Decree No 36/2014/ND-CP on growing, processing and exporting catfish, towards ensuring quality and increasing competitiveness of tra fish products in new markets.
Viet Nam’s tra fish products have been sold in 113 countries and territories worldwide. Tra fish export volume and value in new markets such as China, Brazil and Mexico have been rising, while those in traditional markets have been slowing.
Michael Boddington from Asian Agribusiness Recruitment Training Development (AARTD) has been involved in agribusiness in Asia since 2000. AARTD has office both in Vietnam Ho Chi Minh City and China Beijing. So AARTD has a thorough understanding of the Vietnam and China agribusiness industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email: michael@aartd.com
Source: http://vietnamnews.vn/economy/278781/tra-fish-exports-to-china-grow.html
Asia’s largest laying hens farm will put into production project in May, 2015
Hebei key construction projects – China, USA, Germany and Netherland 5 companies invest 1.176 billion CNY to LuTaiBei laying hens agricultural circular economy industry demonstration base project, planning cover 1089 mu areas. Project is including laying hens farms, egg processing plants, feed mills, organic fertilizer plant, young chicken farms, bio-technology research and development of organic farming and supporting logistics. After completion of all, will reach 4 million laying hens years living goods, with an annual output of 70000 tons of egg production scale, will be Asia’s largest laying hens’ project. Currently the project is progressing well, chicken farming equipment has been installed, enter the commissioning phase, plans to put into production in May this year.
Michael Boddington from Asian Agribusiness Recruitment Training Development (AARTD) has been involved in agribusiness in Asia since 2000. AARTD has office both in Vietnam Ho Chi Minh City and China Beijing. So AARTD has a thorough understanding of the Vietnam and China agribusiness industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email: michael@aartd.com
