China-Australia Free Trade Agreement

Mr HUGHES (Giles) (14:29): My question is to the Minister for Mineral Resources and Energy. What is the likely impact on South Australia's minerals and petroleum exports of the China-Australia Free Trade Agreement?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy, Minister for Small Business) (14:29): I thank the member for his question and his keen interest in growing our resources sector. I am sure most members of the house will already know that the government's strategy to grow our exports to China has been delivering great results. The government regards our relationship with China as one of our most important. It is a relationship that is based on shared interests and mutual respect.

Our ongoing engagement with the People's Republic of China has been built on the solid foundations of the Australian government's national commitment to our friend and trading partner. In making stronger partnerships, we can and we must do more. We know that there is more to be done to reap the full reward of our state's natural advantages, to engage and grow our opportunities and to allow us to truly maximise the flow of investment and exports.

The recently announced China-Australia Free Trade Agreement is an important step to enhance our government's strategy by delivering a significant reduction in tariffs that are currently applied to South Australian exports in the resources and energy sector. Significant tariff elimination in the new agreement includes removal of tariffs on refined copper and alloys—good news.

South Australia was founded on copper mining. It played a vital role in our past and will into our future. As a state, we produce enough copper to meet the demands of building more than 1.3 million homes each year, fulfilling the requirements for plumbing, roofing, fittings and appliances. Copper is a commodity of the middle class and, as China embarks on rampant modernisation, this state and South Australian copper will play an important part.

Copper, as is the case with the state's resources sector, is only part of the story. The agreement sees the removal of tariffs on resources and energy products and provides greater certainty for Australian exporters by locking in zero tariffs on major exports such as iron ore, gold, crude petroleum oils and liquefied natural gas.

This government recognises the importance of the resources sector and we recognise the importance of this historic agreement. We congratulate the commonwealth government on negotiating it. We know that this agreement will allow us to further build on our relationship with an important trading partner and underpin the continued expansion of our state's resources sector.

Mr Pederick interjecting:

The SPEAKER: The member for Hammond is called to order.

The Hon. A. KOUTSANTONIS: Mineral and petroleum exports now make up 39 per cent of the state's total exports or $12.1 billion, where 10 years ago it was only 16.3 per cent or $7.7 billion. Around half our state's mineral and petroleum products are directly exported, many to China, and this agreement will have a profound effect on our state's economic prosperity and the ability to attract investment and expand. Our state's economy has always been driven by exports. There can be no doubt that the mineral and petroleum sector—

The SPEAKER: Alas, the Treasurer's time has expired.

The Hon. A. KOUTSANTONIS: That is unfortunate, sir.

Members interjecting:

The SPEAKER: It seems the Treasurer has had a reprieve.

The Hon. A. KOUTSANTONIS: There can be no doubt that the mineral and petroleum sector is making a significant and expanding contribution to the prosperity of our state, a contribution that will be further enhanced and advanced by this historic agreement, a contribution that members on this side of the house appreciate and not one that they want to see jeopardised by misinformation and sabotage by extremist groups and their allies opposite.