Back to Cnchemicals.com 
On 17 November, talks between Chinese President Xi Jinping and Australian Prime Minister Abbott in Canberra saw the two countries finished their free trade agreement (FTA) negotiation. The agreement contains 2 parts. In the 1st, all the products covered will enjoy zero-tariff status when exported to Australia from China. In the 2nd, over 85% of the products covered will be zero-tariff when exported to China from Australia, this proportion rising to 93% within 4 years and after this 95%, according to Dairy Products China News 1411 on November by CCM.
Tariffs on Australian dairy products entering China run up to 20%, but are now to be removed completely over 4-11 years, dependent on the specific commodity.
Naturally there has been a positive reception in Australia. In a Melbourne paper on 20 November one local dairy company - Vi Plus Dairy, operating from the old Bonlac Toora factory - took out a major front page advertorial offering their congratulations on the achievement of the FTA!
The FTA will influence trade in several ways:
Tariff-free trade seems likely to attract more Chinese dairy enterprises to invest in Australia, where milk prices are lower and quality higher, a pattern familiar through other food-security driven investments by the industry in New Zealand and Europe
Australia will expand milk output: this has been at a severely reduced level ever since the peak years either side of year 2000. As a side effect, growth in dairy exports to China has the potential to reduce the country's reliance on the export of rocks and minerals. Gary Helou at Murray Goulbum, suggests higher payouts to dairy farmers can take the country from 10 billion litres to 20 billion litre. Many in the industry have doubted this vision for a country which never quite reached 12 billion litres at its peak to date, but the potential could be there IF wider issues such as water supply allow; what does appear certain is that Australia will supply more dairy products to China going forward than in the past.
New Zealand will face more competition in exporting dairy products to China. A notable aspect of the deal which Australian negotiators have been quick to highlight is the absence of the special safeguard terms present in the New Zealand FTA, which have contributed to the rush to import early each year in recent times. Likely there will be moves now by New Zealand to better its deal: a clause in the 2008 agreement makes legal provision for improvements in trading terms extended by China in any new trade deal to be automatically applied to its agreement with New Zealand.
European countries will also face stepped up competition at a time when milk production is rising and expected to expand further after the quotas are gone.
Table of Content: Dairy Products China News 1411
South Korea to Expand Exports of Infant Formula to China
Challenges for Chinese UHT Milk Processors
Goat Milk Products Enjoy Huge Potential in China
Dairy Industry's Prosperity Index Increases Slightly in Q3
China Reaches Free Trade Deal with Australia
Danone Becomes Second Biggest Shareholder of Yashili
New Competitors in Infant Formula Market
Royal Dairy Cooperates with Irish Dairy Board
Price of Raw Milk in China Continues to Drop
Vitasoy Launches Premium Soy Milk
Three Infant Formula Processors Acquire Production License
Nanshan Animal Husbandry Builds Dairy Farms and Milk Powder Production Lines
Guangxi Imports Large Numbers of Cows
Yantang Dairy's IPO Approved
Royal Dairy Sees Growth in Net Profit in Q3 2014
Jiangsu Province Streamlines Test Efficiency on Fresh Milk Imports
Subsidiary of Junlebao Dairy Cooperates with Ireland's Keenan
Milk Deluxe Launch New Product Series
Shaanxi Province Issues Merger and Consolidation Plan of Dairy Industry
Bright Dairy to Take over Tnuva by January
The Dairy Products China News is a monthly newsletter jointly published by CCM and Orrani Consulting - an overseas dairy expert and a leading consultancy specialized in the food/drink and ingredient sectors. It combines CCM International's extensiveknowledgeoftheChinese dairy industry with Orrani's specialization inthe global dairy sector. Dairy Products China News has an In-depth and insightful analysis from CCM's experts, accurate market data and first-hand information and a forecast on the development trend of the dairy market. It brings you the latest information on new market and company dynamics, new dairy products and consumption trend, new legislations and policies and raw milk supply dynamics that are shaping the market.
About CCM
CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With staff of more than 150 dedicated highly-educated professionals, CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis, and Consultancy Service.
For more information, please visit http://www.cnchemicals.com
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China
Tel: 86-20-37616606
Email: econtact@cnchemicals.com
This article was provided by CCM, a leading provider of data and business intelligence on China's chemicals market. Contact us:
- LinkedIn: http://cn.linkedin.com/pub/kcomber-inc/9a/964/2b2/
- Facebook: https://www.facebook.com/ccmkate
- Twitter: https://twitter.com/CCM_Kcomber
-
Average:
-
Reads(578)
-
Permalink