As of the 1st of 2017, 7000 tariff cuts under ChAFTA came into effect. These cuts include products such as Australian bottled wine, ice cream, seafood, fruit, live meat, etc. most of which are now at the halfway point of the ChAFTA's tariffs dismantlement. Items such as Carpets, Plywood, Ethyl Alcohol, Feathers and Fish are now at the 4% mark, down from 6% the previous year; these items will continue to reduce 2% until the 1st of January 2019 when the first lot of tariffs under ChAFTA will be completely removed.
By the 1st of January 2026 all tariffs will become redundant for our Chinese trading partners. The last items to be fully cut will be mostly animal products such as Bovine carcass which won't be in effect until 2024, unfortunate for our recent growth in live and frozen meat exports to Asia.
According to the Minister for Trade, Tourism and Investment, Steven Ciobo, ChAFTA has given Australian businesses a competitive advantage, driving considering Australia exports and creating new jobs. After the second Tariff cuts in 2016 the average value of Australian exports doubled, while several exports such as table grapes jumped over 6-fold in value.
As of this year, the remaining 2% tariff on steaming coal to China was eliminated, which should ease the 90% increase in coal's value for Chinese importers.
KAFTA, Korea's free trade agreement (which came into force only two years ago) has already entered tariff free territory on items such as Bottled Wine, Fresh Cherries, Chipping Potatoes and LNG.
Source: SCI Australia