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Mining Australia reported that Australia has signed a Free Trade Agreement with China to lock in existing trade and allow for access to the country and future growth.
Mining Australia reported that Australia has signed a Free Trade Agreement with China to lock in existing trade and allow for access to the country and future growth.
As quoted in the market news:
This new agreement will see more than 85 per cent of Australian goods exported to China tariff free, rising to 95 per cent after full implementation of the ChAFTA.
In regards to mining, tariffs will be removed from close to all Australian resources and energy products exported to China, including an eight per cent existing tariff on aluminium oxide and all tariffs on coking coal as of today.
However the tariffs on thermal coal are slated to be slowly phased out over a period of two years. Mining resources make up four out of the top five exports to China, with iron ore (worth $57 billion); coal (worth $9.3 billion); gold (worth $8.1 billion); and copper (worth $2.1 billion) rounding out the list.
“The Agreement secures better market access for Australia to the world’s second largest economy, improves our competitive position in a rapidly growing market, promotes increased two-way investment and reduces import costs. It is a win for households and businesses alike,” trade minister Andrew Robb said, following the signing of the agreement.
The agreement has been welcomed by the Minerals Council of Australia.