There’s genuine cause to say ‘Happy New Year’, with 2019 bringing in a new round of tariff cuts on Aussie exports.
Yes, we appear to have stepped well out of range of the trade war antics permeating the globe, willing to share our produce with our international companions.
This brings the total number of product line Aussies can export tariff-free to China to 5,418. As for Korea, we’re looking at 10,872 tariff-free products.
The Australian Associated Press reports this is the fifth tariff cut under the free-trade deal with China and the sixth reduction with the Republic of Korea.
A long list of tariff-free exports
A lot of Aussie foods and beverages will now be found on kitchen tables in China. Bottled wine, rock lobsters, tomato sauce and fresh cherries, have had their tariffs wiped…making them look even more delicious to Chinese consumers.
Fresh and frozen beef have had their tariff rate decrease to a range of 6–12%, compared to the pre-2019 figure of 7–15%.
Aussie lamb producers have also seen an improvement in their tariff rate, dropping from 11.2% down to just 9%, making it more profitable to export to the booming South Korean market. The same 9% tariff rate was also issued to goat meat.
Moving away from food, Australian shampoo has also had its export tariffs removed, keeping China, our arguably most important trading partner, happy.
Nothing but a positive step in trading
It certainly is a great way for the Australian economy to ring in the New Year.
As AAP reports, Federal Trade Minister Simon Birmingham, thoroughly agrees. He said in a statement:
‘China and Korea are two of our largest trading partners and these tariff reductions will provide a significant boost for Australian businesses looking for export opportunities into these markets.
‘Over the past five years under the Liberal-National Government our total trade covered by agreements has risen from 26 per cent to almost 70 per cent.’
We saw an 11.27% hike in the amount of Aussie goods exported to China from 2016/17 to 2017/18. The value reached a whopping $106.3 billion.
Now, with 1500 improvements on export rates, we can only imagine the astounding figures will get in 2019. Needless to say, we’re excited.
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