China’s exports to Australia will receive $100 million in tariff reductions

Recently, the Ministry of Commerce held a regular press conference to report on business operations in the first five months of this year. Ministry of Commerce spokesperson Shen Danyang said that after the agreement is implemented, China’s exports to Australia will receive US$1.66 billion in tariff reductions. Products that can enjoy relatively large amounts of tariff reductions include clothing and leather, electronic and mechanical products, other manufactured products, steel and metals, and chemical products. The cumulative reductions and exemptions for these categories of products can account for 30% of the total reductions and exemptions. More than 90.
Shen Danyang said that the China-Australia Free Trade Agreement is the first time that my country has negotiated a free trade agreement with a major developed economy with a large economic aggregate. It is also the free trade agreement with the highest overall level of trade and investment liberalization that my country and other countries have signed so far. one. These are its two most notable features. For example, in the field of service trade, Australia is the first country to make a service trade commitment to China in the form of a negative list. In terms of investment facilitation arrangements, it is the first time that a developed country has made special facilitation arrangements for engineering and technical personnel under Chinese investment. For another example, Australia is the second country in the world to make commitments to my country through free trade agreement negotiations on the “Holiday Work Visa Arrangement” and professionals with Chinese characteristics. It is also the developed country that has granted China the largest number of relevant access so far. Such characteristics mean that it has many benefits for Chinese enterprises and people. For example, relevant personnel of Chinese investment companies in Australia mentioned just now can obtain visa facilitation arrangements.
He introduced that personnel engaged in large-scale investment and engineering projects in the fields of food, agriculture, resources and energy, transportation, telecommunications, power supply and power generation, environmental tourism, etc. will receive convenient treatment in Australia, which will help Chinese companies fully compete in Australia. Advantage. In addition, for Chinese companies, some industrial sectors can obtain more benefits from the China-Australia Free Trade Agreement. In terms of tariff reductions, Australia has reduced tariffs on Chinese export products. We have a calculation that after the agreement is implemented, China’s exports to Australia will receive US$1.66 billion in tariff reductions. When the agreement comes into effect, it will receive US$1.02 billion in tariff reductions. Within three years of the agreement taking effect, it will receive US$1.6 billion in tariff reductions. . What are the relatively large products that can enjoy this kind of tariff reduction? Mainly include clothing and leather, electronic and mechanical products, other manufactured products, steel and metal, and chemical products. The cumulative amount of exemptions for these types of products can account for more than 90% of the total exemptions.
In terms of creating trade opportunities, Shen Danyang said that after the implementation of the agreement, the proportion of China’s exports to Australia in China’s total exports is expected to increase from 1.7% to about 2.1%. China’s exports to Australia now account for only 0.7% of China’s total exports, and may increase to about 2.1% in the future. The products with greater potential for growth in China’s exports are mainly the textiles, clothing, leather products, electronics and mechanical equipment just mentioned. , steel and metal products, mineral products, chemical products and transportation equipment, etc.
In addition, for ordinary people, they will benefit from tariff reductions and exemptions when importing goods from Australia.