Growing opportunities to do business with Asia - Free Trade Agreements

Did you know that Australian exporters to China, Japan and South Korea can now take advantage of numerous tariff reductions on a range of products, such as beef, skateboards and wine?

The opportunities are available thanks to a reduction in tariffs specified in Free Trade Agreements (FTAs) between Australia and other countries.

Australia's FTAs with China, Japan and Korea are opening up new opportunities for Australian exporters across a wide range of sectors. A summary of some of the key outcomes is below:

China FTA

• China is the destination for more than a quarter of Australia's total exports to the world.

• Thanks to this FTA, more than 96% of Australia's goods exports to China are now eligible to enter duty-free or with preferential access.

• Examples of tariff reductions include:

• Wines & Spirits - tariffs of 14% - 20% are being eliminated by 1 Jan 2019

• Beef - tariffs of 12% - 25% are being eliminated by 1 Jan 2024

• Pharmaceuticals, including vitamins and health products - tariffs are being eliminated by 1 Jan 2019

Korea FTA

• Korea is Australia's fourth largest trading partner.

• It is a growing source of Australian investment.

• Examples of tariff reductions include:

• Wine - a 15% tariff has been eliminated

• Beef - a 40% tariff will be progressively eliminated by 1 January 2028.

Japan FTA

• Japan is the second largest export market and fourth largest source of foreign investment.

• Examples of tariff reductions include:

• Beef - rapid reduction o fa 38.5% tariff

• Wine - elimination of a 15% tariff by 2021.

• Processed foods - tariffs of up to 29.8% on items like juice, peanut butter, tea and pet food are being eliminated. Preferential treatment is given to chocolate, honey, biscuits and cakes.

Horticulture - immediate elimination of up to 6% tariffs on many types of fresh produce.

An FTA with Singapore was also finalised recently.