The Australian and Chinese governments have entered into the China-Australia Free Trade Agreement (ChAFTA) on 17 June 2015, to be implemented in early 2016 if not sooner.
The Chinese market is important to Australia. China is Australia’s largest trading partner, with exports from Australia worth AU$107 billion and imports to Australia worth AU$52 billion. In 2014, goods traded with China accounted for 42% of total trade in Western Australia.
The ChAFTA secures continued growth in the trade relationship between Australia and China by making Australian goods exports more competitive in the growing Chinese market, reducing the costs of importing from China, facilitating expansion of Australian business operations into the emerging Chinese market, and encouraging new investment in the Australian economy.
The ChAFTA provides benefits to anyone conducting trade with China by reducing tariffs applying on both directions of trade. Import tariff rates on 70% of current imports from china will be reduced to duty free instantly, with other tariff classifications gradually phasing to duty free over a 3 to 5 year period.
As a result, the volume of goods imported and exported is set to increase considerably. Importers will benefit by being able to enjoy lower taxes and duties on goods imported from China. The ChAFTA will provide a boost to the shipping and logistics industries in Australia.
Beginning to End Logistics eagerly awaits the implementation of the ChAFTA as a source of benefit to the Australian economy, the local transport and logistics industry and our clients. Just call our friendly staff on 1800 70 67 60 to discuss how we can assist you in handling your logistics needs.