China-Australia Free Trade Agreement

Mrs VLAHOS (Taylor) (14:13): My question is to the Minister for Agriculture, Food and Fisheries. Can the minister inform the house about how the new China-Australia Free Trade Agreement is going to impact on South Australia's agricultural sector?

The Hon. L.W.K. BIGNELL (Mawson—Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Tourism, Minister for Recreation and Sport, Minister for Racing) (14:13): I thank the member for Taylor for the question and acknowledge the work that she is doing with the horticultural people in her electorate to make sure that not only do they all expand but that they can take advantage of this fantastic announcement by President Xi and Prime Minister Abbott, which is huge for all of Australia but particularly for South Australia where we have a huge agricultural base.

In the two years since we launched our China strategy here we have increased exports across the board by $1.5 billion to China. If you look at the forward expansion trajectory, 47 per cent of the increased growth between now and 2020, in terms of agricultural exports to the world, will be taken up by China.

China buys more of Australia's agricultural produce than any other export market. Just to go over the China-Australia Free Trade Agreement, tariffs on dairy, beef and sheep meat, wine, horticulture and seafood will be phased out. It includes the removal of all tariffs on our dairy products, which can be up to 20 per cent, within four to 11 years.

If we look at the New Zealand example, since they signed their FTA back in 2008, they have seen their exports of dairy produce increase from $500 million a year to $4 billion a year, so there is some incredible growth there that we will be looking to replicate here in South Australia. It includes the removal of tariffs of 12 to 25 per cent on beef over nine years, the removal of tariffs on live animal exports of 10 per cent within four years, the removal of tariffs on sheep meat of 12 to 23 per cent—

Mr Knoll interjecting:

The Hon. L.W.K. BIGNELL: It's probably good if you just listen to what's happening. This is a really important moment. You represent an electorate, member for Schubert.

Mr PISONI: Point of order: responding to interjections.

The SPEAKER: The member for Unley is correct, and I uphold his point of order.

Mr Tarzia interjecting:

The SPEAKER: The member for Hartley is warned a first time.

Mr Tarzia: You should know it.

The SPEAKER: The member for Hartley is warned a second and final time.

The Hon. L.W.K. BIGNELL: The removal of tariffs on seafood, including 15 per cent and 14 per cent respectively on rock lobster and abalone over four years, an Australia-only duty-free quota for—

Members interjecting:

The Hon. L.W.K. BIGNELL: It's quite disappointing, Mr Speaker, that the opposition, most of whom represent—

Mr PISONI: Point of order.

The SPEAKER: Yes, the member for Unley. I anticipate his point of order and I uphold it, without even hearing it, which is how kindly disposed I am towards the member for Unley. The breach by the minister is responding to interjections.

The Hon. L.W.K. BIGNELL: Thank you, sir. This is huge news for all people in the agriculture, aquaculture and fisheries sectors here. The advice that we have for the private sector is that, if you have been over to China and you have tried to export your goods into China before and it maybe didn't work out so well, this is a game changer. This is something that will open up new markets and bigger export opportunities for all South Australian producers. It would be very wise for people to go and have another go.

The team at PIRSA has developed some very strong ties, and the Minister for Investment and Trade as well has some excellent ties through the trade channels in China. We want to work with people on the other side of the house, as well as the private sector, to make sure that we take advantage of this free trade agreement, which will increase the amount of exports that we have to this very important trade partner of ours.