China and Australia have finalized a major free trade agreement that will reduce or eliminate tariffs on Australian agricultural imports to China including beef and dairy. Beef is Australia’s most valuable agricultural exports and the country is the world’s third biggest shipper. Over nine years, duties of 12%-25% will be eliminated on beef imports to China, and over the next four years duties of 10% on live animal imports will be eliminated. In addition, within four to eleven years, all tariffs on Australian dairy imports which can run as high as 20%, will be eliminated. This elimination will prove to be a ‘game changer’ for Australia, placing the country on a level playing field with New Zealand which signed its own agreement with China, which is the world’s largest dairy importer, accounting for 30% of the world’s purchases, in 2008. Once the agreement is fully implemented, it could boost Australia’s beef production by A$270 million per year by 2024, and by 2030 the full benefits to the industry could reach A$3.3 billion according to Meat & Livestock Australia. Import duties will also be removed for Australian wines, horticultural products, barley, seafood, hides, skins and leather, and various processed foods according to the Australian government.
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