While the first year of the much-lauded deal brought impressive gains for some commodities, barriers around food safety standards and biosecurity are stopping others from getting the most out of the deal.
“We think going forward there’s a lot to the China-Australia free-trade agreement we haven’t seen yet,” National Farmers’ Federation trade and economics general manager Scott Kompo-Harms said.
The non-tariff barriers needed to be worked on collaboratively on with China, he said.
Yesterday marked the first anniversary of ChAFTA coming into force.
Figures indicate Australia exported $9.9 billion in agricultural products to China in the past year, with huge gains in certain commodities.
Table grape exports increased sixfold, from $15.3 million between January and September 2015, to $101.9 million for the same period in 2016.
Baby formula exports have more than quadrupled, from $53.2 million to $233.6 million.
Oranges and cherries have also made impressive inroads.
Mr Kompo-Harms said while overall export growth under ChAFTA wasn’t as high as expected, “there’s still a lot of upside”.
“I’d say it hasn’t lived up to expectations thus far but we’re still very optimistic … if we can get the relationships right and put the right frameworks in place,” he said.
Voice of Horticulture and Citrus Australia president Tania Chapman had no doubt ChAFTA had been “truly phenomenal”.
“China has become our No. 1 market,” she said.
“The biggest part is the relationship formed from government to government allows us to come in behind it and develop our own relationships.”
Ms Chapman said the growth in citrus and table grapes were backed by recent inroads in stone fruit, and she believed there was a huge potential market still to be tapped for vegetables.
Dairy Australia trade manager Charlie McElhone said dairy exports to China had more than doubled in volume in the past year, underpinned by ChAFTA, which created more interest and investment in dairy, he said.
But, despite the gains, non-tariff barriers were also an issue for dairy.
“There’s still challenges when it comes to changes in regulations around infant formula and liquid milk … and the tightening of e-commerce,” Mr McElhone said.
“But there’s still a wide recognition it has created an enormously positive platform.”
A third round of tariff cuts kicks in from January 1. Under ChAFTA, most tariffs on fruit, vegetables and nuts will be removed by 2019, on dairy products by 2026, and beef products by 2024.
Source: WeeklyTimes
Link: http://www.weeklytimesnow.com.au/agribusiness/china-fta-big-gains-for-some-but-nontariff-barriers-still-in-the-way/news-story/ac49a090858108e66e8181c5555daccf