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Legislative Council - Fifty-Third Parliament, First Session (53-1)
2014-12-03 Daily Xml
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China-Australia Free Trade Agreement

The Hon. J.S. LEE (15:55): Today it is my pleasure to speak about the benefits of the Australia-China free trade agreement to South Australia. As the shadow parliamentary secretary for trade and investment, small business, as well as multicultural affairs, I was delighted to learn that, after a decade of intense and comprehensive negotiations, China will open the doors to its $10 trillion economy through an historic free trade deal signed by Australian Prime Minister Tony Abbott and President Xi Jinping in Canberra on 17 November this year.

It was a very successful and high-profile visit by President Xi Jinping and Madame Peng to Australia. Chinese migrants in Australia have strong affections for their motherland, China, and the presence of President Xi on Australian soil gives them joy and pride in being Chinese. Therefore it is no surprise that President Xi and his wife were given a movie star welcome reception in the cities that they visited.

China is Australia's largest two-way trading partner in goods and services, valued at more than $150 billion in 2013. President Xi's visit to Australia produced the historic free trade agreement signed by the Australian Prime Minister which will cement the comprehensive strategic partnership between China and Australia. Under the agreement, 95 per cent of Australian goods exported to China will be tariff free. Tariffs on dairy, beef, sheep, wine, horticulture and seafood will be phased out. Tariffs will also be scrapped in the resources and energy sector.

All of this is great news for South Australia. In particular, winemakers are set to benefit significantly over the coming years due to tariffs of between 14 and 30 per cent on Australian bottled and bulk wine being phased out within four years. South Australian beef producers are also set to profit due to the FTA. Tariffs ranging from 12 to 25 per cent on beef and live animal exports to China will be scrapped in the coming years.

China has a big appetite for our products. Australia exported 153,000 tonnes worth $722 million in 2013, four times the amount of beef that was exported to China in 2012. Australian beef has a reputation for high quality in China and will only continue to grow under the FTA arrangement. South Australian fisheries can also expect to prosper as a result of the deal. Australian premium seafood products, such as abalone and rock lobster, are already the leading exports to China, worth $90 million and $4 million respectively in 2013.

Furthermore, there is also great news in the service industries. Australian companies will also be free to open private hospitals, nursing homes and hotels in China and offer legal, construction and other services. South Australia will be able to promote professional expertise to China in these sectors. With the increased demand from China, local companies will provide employment to professionals with good understanding of Chinese markets and those with bilingual skills. This will create more jobs and wealth to the economy.

It is expected that the FTA will deliver a strong flow of tourism and educational exchange between South Australia and China. Other exciting news is the establishment of a Chinese consulate-general office in Adelaide as part of Australia's free trade deal with China. This will further enhance the diplomatic relations and trade links between China and South Australia.

I would like to pay tribute to the important contributions made by the Chinese community in South Australia, particularly those business chambers and associations working really hard to promote trade between South Australia and China. Their connections with China will assist local companies to increase South Australian accessibility to a multitude of Chinese markets and investors.

As a member of parliament with a proud Chinese heritage, it is a great privilege and honour for me to serve our community and promote South Australia to China. This important win-win agreement will unlock new opportunities and further open the door of prosperity for all of us.

The Hon. S.G. WADE: Mr President, I draw your attention to the state of the council.

A quorum having been formed:

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