What's in it for Australian agriculture?
China is Australia's largest agriculture and fisheries market and was worth about $9 billion in 2013. It's believed China will account for 43 per cent of global growth in agricultural demand by 2050.
The OECD estimates beef will be the fastest-growing import sector in China. Last year, Australian beef exports to China totalled $722 million, a new record.
China is also Australia's most important sheepmeat market, worth around $385 million last year.
China is Australia's second-largest market for dairy exports worth $351 million in 2013. The Australian dairy sector will get a better deal than New Zealand, especially unlimited preferential access on all produce except whole milk powders which face a discretionary safeguard.
If the NZ free trade agreement is any indication, Australia's seafood exports - worth $38 million in 2013 - will increase significantly after the removal of tariffs.
China's wine market import market is growing dramatically, nearly doubling in size since 2010 and worth $1.6 billion in 2013. Both NZ and Chile have preferred access.
Removal of tariffs:
- Dairy products (some as high as 20 per cent) within 4-11 years.
- Beef (12-25 per cent) over nine years.
- Pork (up to 20 per cent) within four years.
- Live animal exports (10 per cent) within four years.
- Sheep meat (12-23 per cent) over eight years.
- Horticultural products (up to 30 per cent) most within four years.
- Wine (14-20 per cent) within four years.
- Barley (3 per cent) immediately.
- Seafood (up to 15 per cent) over four years.
- Processed food, including fruit juice and honey.
- Hides, skins and leather (5-14 per cent) over two to seven years.
- An Australia-only duty free quota for wool.
Not included in FTA
Rice, wheat, cotton and sugar aren't included in the deal but will be renegotiated three years after signing.
What's in it for financial services?
- China has given the most substantial market access to Australian banks, insurers and securities firms of any free trade partner, apart from agreements with semi-autonomous territories Hong Kong and Macau.
- Australian insurance providers given access to the third-party liability motor vehicle insurance market.
- Streamlined approval processes and waiting periods for Australian banks to be involved in lucrative local currency (renminbi) trading.
- Australian financial service companies will be able to set up joint venture companies with 49 per cent Australian ownership, where foreign ownership was previously banned.
