Zero Tariff Of China Australia FTA Will Promote Textile And Clothing Exports

Chinese Commerce Minister Gao Hucheng and Australian Minister of trade and investment Andrew Rob signed the "free trade agreement between the People's Republic of China government and the Australian government" respectively on behalf of the 17 governments in Canberra, Australia. Australian Prime Minister Abbott attended the signing ceremony.

The Sino Australian FTA agreement covers more than ten fields of goods, services, investments and so on. It has achieved the goal of "comprehensive, high-quality and balanced interests". It is one of the highest level of trade and investment liberalization agreements with other countries so far. The two sides each have 85.4% of the volume of export trade, and will achieve zero tariff immediately when the agreement comes into effect. After the tax cut transition period, Australia will eventually achieve zero tariff ratio and trade volume ratio will reach 100%, and China will achieve 96.8% and 97% of the total tariff volume and trade volume respectively. This greatly exceeds the 90% level of tax reduction in general FTA. In the field of investment, the two sides will give MFN treatment to each other from the time the agreement comes into effect. The Australian side will also reduce the threshold for examination and make facilitation arrangements for Chinese enterprises to invest in Australia.

In cotton Spin In terms of products, our country's origin is Australia In the past nine years, the duty of cotton yarn has been gradually reduced to zero, and the tariff on cotton fabrics has been reduced to zero within five years. From Australia, the basic tax rate for textiles originating in China shall be lifted from the entry into force of the agreement and shall be null and void (tax code No. 5201-5609), including those originating in China. Cotton yarn , Cotton fabric The basic tax rate for garments originating in China should be reduced to zero from 1 to 5 years and will be restrained.

In 2014, China exported 5 billion 407 million US dollars of textile and clothing to Australia, an increase of 7.52% over the same period last year. Among them, export textiles amounted to 1 billion 291 million US dollars, an increase of 6.78% compared with the same period last year, and export clothing was 4 billion 116 million US dollars, an increase of 7.75% over the same period last year. In the first 4 months of 2015, China exported $1 billion 705 million to Australian textiles and clothing, down 7.34% from the same period last year.

It is believed that with the signing of the Sino Australian FTA, the tariff on textile and clothing exported to Australia will gradually decrease to zero after the previous 5%. China will export more and more textile and clothing to Australia, and the trade between China and Australia will become more and more closely and smoothly.