Tariff cuts and better access for Aussie farmers on Jan 1

Australian farmers exporting overseas will be better off as tariffs are slashed or abolished under the Trans Pacific Partnership and the China-Australia Free Trade Agreement (ChAFTA), Minister for Agriculture David Littleproud said today.

“Tariffs on our farm produce going into China will be largely eliminated on January 1,” Minister Littleproud said.

“Key exports including wine, most fruit and vegetables, seafood and some dairy will no longer cop a tariff in China, which means our produce will be more affordable for Chinese consumers.

ChAFTA has contributed to significant growth in exports over the last 12 months, and navel orange exports increased 57.5 per cent to $87.2 million.

The Comprehensive and Progressive Agreement for Trans Pacific Partnership (CPTPP) entered into force on 30 December 2018.

“We’re giving our farmers more options overseas so they can sell where they choose - not just to the supermarkets here in Australia.

“Australia exported more than $12.5 billion of agricultural produce to CPTPP countries last financial year, representing almost a quarter of Australia’s total ag exports.”

With the CPTPP entering into force on 30 December 2018, exporters will receive two tariff reductions within three days.

The first on 30 December—reductions associated with the entry into force of the agreement—followed by the annual tariff reduction rate on 1 January 2019 in those countries which ratified the CPTPP (Japan's second tariff cut will take effect on 1 April 2019). 

Australia's ratification of the CPTPP meant Australian exporters benefitted from immediate tariff cuts on entry into force of the CPTPP on 30 December 2018 for Canada, Japan, Mexico, New Zealand and Singapore, and further tariff cuts into Canada, Mexico, New Zealand and Singapore on 1 January 2019.

Australian exporters will benefit from two tariff cuts for Vietnam on 14 January 2019 (when the CPTPP enters into force for Vietnam).

Since January 2016, the Australian Government has delivered 92 key market access gains or restorations and 87 key market access improvements or actions to maintain market access for Australian agriculture.

Facts of interest to Australian fruit and nut producers are;

CHAFTA

• Elimination of the 10 to 25 per cent tariff on macadamia nuts, almonds, walnuts, pistachios and all other nuts by 1 January 2019

• Elimination of the 10 to 30 per cent tariff on all non-citrus fruit by 1 January 2019

• Elimination of the 7.5 to 30 per cent tariff on orange juice by 1 January 2022, and elimination of tariffs of up to 30 per cent on other fruit juices by 1 January 2019

• Elimination of the 15 per cent tariff on natural honey, and the up-to-20 per cent tariff on honey-related products, by 1 January 2019

• Elimination of the 15 to 25 per cent tariff on canned peaches, pears and apricots by 1 January 2019

CPTPP

• Elimination of all Canada’s horticulture tariffs upon entry into force of the CPTPP. Australian horticultural exports to Canada were valued at $38 million in 2017

• Elimination of most of Mexico’s horticulture tariffs upon entry into force of the CPTPP

Back to news