By BEN CAMERON
DAIRY, beef and wine industries in Cardinia Shire will reap the benefits of a new free trade agreement signed by Australia and China earlier this week.
Victorian Farmers Federation Cardinia branch president Ian Anderson said the agreement would slowly scale down export tariffs in the dairy industry over the next four to five years.
This would create a level playing field with New Zealand who has held a distinct market advantage with tariffs reducing six years ago through a similar agreement, he said.
Mr Anderson said Cardinia Shire dairy farmers were currently paying between 10 and 15 per cent tariffs.
“This puts us at a trade disadvantage,” he said.
“New Zealand has been scaling down tariffs since their agreement was made six years ago.
“China is our largest export market.”
Mr Anderson, also a dairy farmer, said the overall trade benefits would take time to see.
“It won’t happen overnight, but tariffs will be scaled down over the next four to five years,” he said.
“But we’re fast tracking compared to New Zealand.
“This will bring us into line with New Zealand. It’s (a reduction in tariffs) been great for their industry and economy.
“It’s (the agreement) also a super result for the beef and wine industry, which is very relevant for the Cardinia Shire.
“It’s a great result from an agricultural perspective, it’s very positive.”
He said there was no change however for cotton and sugar exporters.
Meat and Lifestock Australia said tariffs on Australian beef of 12-25 per cent would be removed over nine years.
Nearly 90 per cent of Australia’s sheepskin exports, and 80 per cent of cattle hides, are exported to China.
Australian Red Meat China-Australia Free Trade Agreement Taskforce chairman David Larkin said Australian red meat industry had been at a distinct competitive disadvantage in China.
