Asian deals must tackle mining tariffs

Australia must tackle a raft of tariffs on mining exports if it is to grasp the opportunities from a growing Asia, the Minerals Council of Australia says.

If Australia is to further expand its mining exports in Asia it must tackle a raft of barriers and fees when negotiating a series of trade deals in the region, the Minerals Council of Australia says.

New research conducted for the council has found Australia's mining export success story in Asia still has a long way to run.

It is already the economy's biggest export industry, worth $146 billion, with Asia accounting for more than 80 per cent of these exports.

The council's interim chief executive David Byers says as Asia's economies grow, they will increase investment in infrastructure, and resources and energy-intensive production activities, creating additional demand for Australian resources.

"As these economies develop their own resources sectors, there will be opportunities for Australia to export mining equipment, technology and services," he says.

"However, realising these opportunities will require tackling a raft of trade barriers and other impediments."

Australia is in the process of negotiating free trade agreements with India and Indonesia, as well as being in discussion with the Association of Southeast Asia Nations to review the ASEAN-Australia-New Zealand deal.

In the first of a series of research papers, released on Wednesday, it found while tariffs on minerals and metals have fallen markedly across ASEAN, they remain high in India and this is compounded by a battery of border fees and charges.

Indonesia is also imposing significant new restrictions on foreign investment in mining, in a climate of growing economic and resources nationalism.

"Freeing up mining and mining services trade ... will boost growth and jobs in Australia while contributing to economic development and poverty reduction in our trading partners," Mr Byers said.


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Source: AAP



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