Saturday 25th Jan, 2020

Australian tariff cuts for 2020

Australian exporters are set to benefit from a new round of tariff cuts, providing better access to China, Korea, Japan, Mexico and Canada.

Australian exporters are set to benefit from a new round of tariff cuts, providing better access to China, Korea, Japan, Mexico and Canada.

It is a result of the country’s free trade agreements with China and South Korea, as well as the Trans-Pacific Partnership.

Federal Trade Minister Simon Birmingham said the latest round of cuts would build on the benefits that the major agreements have already delivered.

“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,” he said.

“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.

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“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.”

This is the sixth round of tariff cuts under the China-Australia Free Trade Agreement and the seventh round under the Korea-Australia Free Trade Agreement. It is also the third round of tariff cuts under the Trans-Pacific Partnership, which came into effect on 30 December 2018.

“Our Government has done the heavy lifting and delivered these deals and our farmers and businesses continue to reap the benefits,” Birmingham said.

“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.”

China is Australia’s largest trading partner, with goods esports for 2018-19 totalling $134/7 billion. South Korea is the country’s fourth largest trading partner, with goods exports worth $25.5 billion in 2018-19.