Australian exporters are ready to capitalize on improved trade conditions in a number of key Asian markets. A fresh round of tariff cuts on a range of the country’s fresh produce products came into effect on 1 January 2020, under free trade agreements settled by the Australian government.
The terms of the China-Australia Free Trade Agreement (ChAFTA), which came into force in December 2015, have seen the tariff on Australian oranges fall from 4.9 per cent to 3.7 per cent, while the tariff on mandarins has fallen from 5.3 per cent to 4 per cent.
Meanwhile, the Korea-Australia Free Trade Agreement (KAFTA) has seen the tariff on Australian mangoes decrease from 12 per cent to 9 per cent. Further tariff reductions on Australian fresh produce products entered force on 1 January 2020 under the terms of the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA). This included the elimination of a 3 per cent tariff on both Australian-grown oranges (fresh or dried) and macadamias (in shell and shelled) in Vietnam.
The Progressive Agreement for Trans Pacific Partnership (CPTPP) has also delivered a further round of tariff reductions on selected Australian export products in Canada, New Zealand, Mexico, Singapore and Vietnam, although there have been no significant gains for fresh produce.