China-Australia Free Trade Agreement

The Hon. M.L.J. HAMILTON-SMITH (Waite—Minister for Investment and Trade, Minister for Defence Industries, Minister for Veterans' Affairs) (14:05): I seek leave to make a ministerial statement.

Leave granted.

The Hon. M.L.J. HAMILTON-SMITH: Australia's free trade agreement with China took a significant step forward today with the formal signing in Canberra by the Prime Minister, Tony Abbott, and China's commerce minister, Gao Hucheng. One benefit of the signing is that the full text of the agreement including, most importantly, all of the tariff schedules, was immediately made available. This development will be very important for farmers and for the regions.

These schedules run to hundreds of pages that spell out the detail, at individual product level, of the benefits that will accrue to Australian exporters. This allows us to refine our current understanding of the agreement's benefits for South Australia. After some administrative and legislative processes it is expected that the full agreement will come into force in October or November, and the first year's scheduled tariff reductions will come into effect. Further tariff reductions are expected to come into force on 1 January 2016; that is, there will be a double dividend within a matter of two to three months.

The agreement gives South Australia a significant advantage over larger players like the EU, the United States of America, Canada and the Chinese agriculture market. In the past, the absence of a bilateral trade agreement with China has meant that Australian producers have faced significant tariffs, not applied to some main competitors, on agricultural products and have been at a competitive disadvantage. This now means South Australian exporters will see tariff elimination on the vast majority of agricultural and horticultural products, mostly over relatively short time frames. For example:

tariffs from 14 per cent to 20 per cent on wine will be eliminated within four years;

the removal of tariffs on all horticultural products, ranging up to 30 per cent, mostly within four years;

the removal of tariffs on seafood, including 15 per cent and 14 per cent respectively on rock lobster and abalone over four years; and

tariff reductions on beef, dairy products and an Australia-only duty free quota for wool.

In the agreement China has offered Australia its best ever services commitments in an FTA. This includes new or significantly improved market access for Australian banks, insurers, securities and futures companies, law firms and professional services suppliers, education service exporters, as well as health, aged care, construction, manufacturing and telecommunication service businesses in China.

The agreement, in addition to evolving patterns of demand in China, is creating new opportunities for South Australian producers which only increase under the FTA. New opportunities mean new jobs—more jobs. The state government is committed to making the best of these opportunities. The recent trade mission to China was our biggest ever and we are already seeing the benefits. It was the largest trade mission ever conducted by a single state in Shandong.

I pay tribute to the businesses, the local government representatives and the trade officers from the state government—

An honourable member interjecting:

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

The Hon. M.L.J. HAMILTON-SMITH: —for their efforts to make the best of the opportunity. Members opposite, however, have questioned those efforts—

Ms Chapman interjecting:

The SPEAKER: The deputy leader is warned for the first time.

The Hon. M.L.J. HAMILTON-SMITH: —preferring, it appears, that we stay at home.

An honourable member interjecting:

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

The Hon. M.L.J. HAMILTON-SMITH: Today's official signing ceremony in Canberra is a great moment in Australia-China free trade relations, something about which the member for Heysen would have no idea whatsoever. Federal trade minister, Andrew Robb, one of the key architects—

Mr Marshall interjecting:

The Hon. M.L.J. HAMILTON-SMITH: For that matter, I wonder about the Leader of the Opposition as well. The federal trade minister, Andrew Robb, to whom I suggest members opposite speak, one of the key architects—

Members interjecting:

The Hon. M.L.J. HAMILTON-SMITH: Here they go, sir, here they go.

Members interjecting:

The Hon. M.L.J. HAMILTON-SMITH: Calm down.

Members interjecting:

The Hon. M.L.J. HAMILTON-SMITH: Calm down.

Mr Marshall interjecting:

The Hon. M.L.J. HAMILTON-SMITH: Am I?

Mr Marshall: You are.

The Hon. M.L.J. HAMILTON-SMITH: Have a look in the mirror, my friend. You've got your own side publicly disagreeing with you. Federal trade—

Mr Whetstone interjecting:

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

The Hon. M.L.J. HAMILTON-SMITH: —minister, Andrew Robb, one of the key architects—

Mr Tarzia interjecting:

The SPEAKER: The member for Hartley is warned a first time. Questions have not yet begun.

The Hon. M.L.J. HAMILTON-SMITH: —of the Free Trade Agreement kindly invited me and other trade ministers to attend the signing in the Great Hall in Parliament House.

Mr Pengilly interjecting:

The SPEAKER: The member for Finniss is warned for the first time.

The Hon. M.L.J. HAMILTON-SMITH: The Department of State Development's CEO, Don Russell, represented me at the event, and I look forward to his briefing on the latest developments.

The state's task is to build on the work done so far. Every trade opportunity means more job opportunities, and I would think that members opposite would welcome the opportunities that farmers will now have to increase their export.

Mr Pengilly interjecting:

The SPEAKER: The member for Finniss is warned for the second and final time.

The Hon. M.L.J. HAMILTON-SMITH: I can assure the house that, on this side, we will do all we can to build the export base of South Australia for the benefit of our farmers and for the regions. I hope that members opposite do the same.

Mr Pederick interjecting:

The SPEAKER: The member for Hammond is warned a first time. The member for Little Para.