Tariffs on Australian exports to China have now been cut twice in less than a fortnight, following initial reductions when ChAFTA entered into force on Dec. 20, 2015. The tariff reductions on exports to Korea will be the third round of cuts under KAFTA since its entry into force on Dec. 12, 2014.
Minister Assisting the Minister for Trade and Investment Richard Colbeck quoted the case of RBK Nutraceuticals in his press release saying the Sydney-based company have increased their exports into South Korea by a huge 161 percent since the beginning of the agreement.
Tasmanian cherry growers have also enjoyed huge increases in demand due to the commencement of KAFTA with the state exporting 185 tonnes of cherries into South Korea over last summer compared with just five tonnes the previous year.
Australia’s beef exports increased more than 30 percent to be worth over 550 million AU dollars (401.5 million U.S. dollars) after the 2015 tariff reduction.
“The conditions are right for this year’s tariff cut to strengthen the tailwinds for this valuable trade even further. Each year KAFTA puts up to 40 million (29.2 million U.S. dollars) back into the Australian beef industry instead of into paying tariffs,” Colbeck said.
For the dairy industry, exports of processed cheese, butter and dairy spreads to South Korea are up by over 50 percent. Infant formula tariffs will be reduced to half under ChAFTA since New Year’s day, providing extra momentum to this already booming trade.
“There’s growing demand across Asia for Australia’s world class goods and services; the opportunities are there for the taking and, if seized upon, will help create jobs, build our economy and lead to greater prosperity for everyone,” Colbeck said. Enditem