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China-Australia FTA ready to reap the rewards

0 Comment(s)Print E-mail CNTV, January 5, 2016
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Australian diary and meat products are already favourite choices for many Chinese consumers. These farm products and other taxed items will see their import tariffs gradually drop to zero over the coming years, thanks to the FTA. The agreement will give consumers lower prices, and save billions in tariffs for companies from both countries.

China-Australia FTA ready to reap the rewards 



New mom Joyce Tang is a loyal consumer of Australian agricultural products. She feeds her son Australian baby formula ordered online, and buys imported beef frequently as well.

"Australia depends on animal husbandry and is famous for its beef and dairy products. They are healthier and safer. I am a mother with a new baby, and I want the best for my child. As a frequent consumer, I will be happy to see Australian products become cheaper," Tang said.

Australian company Tender Plus has been importing Australian beef to Shanghai for 16 years, providing 5,000 tons a year of processed products to five-star hotels, restaurants and supermarkets. On January 1st the import duty on Australian beef was cut to 9.6 percent from 12 percent, and it will be eliminated altogether in nine years. The company's general manager says the FTA will save them at least 8 million yuan a year.

"For us, tariff reduction is the most direct benefit from the FTA. But beyond that, there will also be agreements on all aspects of the beef trade. Quarantine, for example, has been a big issue in the past decade, and so the import of chilled beef was banned at times. But now the FTA guarantees the continuity of quarantine standards, and removes uncertainties for our business," said Lin Siwei, managing director of Tender Plus China.

New mom Joyce Tang is a loyal consumer of Australian agricultural products. She feeds her son Australian baby formula ordered online, and buys imported beef frequently as well.

"Australia depends on animal husbandry and is famous for its beef and dairy products. They are healthier and safer. I am a mother with a new baby, and I want the best for my child. As a frequent consumer, I will be happy to see Australian products become cheaper," Tang said.

Australian company Tender Plus has been importing Australian beef to Shanghai for 16 years, providing 5,000 tons a year of processed products to five-star hotels, restaurants and supermarkets. On January 1st the import duty on Australian beef was cut to 9.6 percent from 12 percent, and it will be eliminated altogether in nine years. The company's general manager says the FTA will save them at least 8 million yuan a year.

"For us, tariff reduction is the most direct benefit from the FTA. But beyond that, there will also be agreements on all aspects of the beef trade. Quarantine, for example, has been a big issue in the past decade, and so the import of chilled beef was banned at times. But now the FTA guarantees the continuity of quarantine standards, and removes uncertainties for our business," said Lin Siwei, managing director of Tender Plus China.

 

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