House debates

Thursday, 22 October 2015

Bills

Customs Amendment (China-Australia Free Trade Agreement Implementation) Bill 2015, Customs Tariff Amendment (China-Australia Free Trade Agreement Implementation) Bill 2015; Second Reading

10:57 am

Photo of Matt WilliamsMatt Williams (Hindmarsh, Liberal Party) Share this | Hansard source

As my colleagues have said, today is a very important and exciting day for Australia's economy going forward. For all the news about the challenges for Australia and my state of South Australia, with rising unemployment and the decline in mining and resources and manufacturing, there is always hope, whether it be in services or in areas in which we have a competitive advantage such as agriculture, wine, beef, seafood, dairy, tourism and health services. These are the strong foundations of our country and offer immense growth potential. As we have heard, there was a misleading union campaign on the free trade agreements, and we were disappointed at the approach that they took. But we have moved on, and they have come to the agreement that this is a good deal for Australia because they know that growth potential is heightened by the FTA.

The increasingly wealthy and mobile middle class in China is creating new opportunities. The recently signed China-Australia Free Trade Agreement will bring unprecedented opportunities across a whole range of areas that I have already mentioned. It is estimated that these free trade agreements, with the China FTA at their centre, will result in thousands of jobs over the next 20 years. I am sure the guests in the gallery acknowledge the potential for the economy as a whole. Already we are seeing some quite extraordinary business opportunities and partnerships emerging between Australian and Chinese companies in anticipation of the China deal, which we hope will enter into force later this year. Sean Keenihan, the Vice President of the Australia China Business Council, from my state of South Australia, said the FTA would see greater trade volumes for South Australia.

The recent signing of the MOU between the Adelaide Produce Market and the Guangzhou Jiangnan Fruit and Vegetable Market is a prime example of the FTAs working for local growers. On the importance of the China-Australia Free Trade Agreement, Angelo Demasi, the CEO, said:

South Australian growers are extremely optimistic about the future trade conditions with China—with all tariffs on horticulture products to go within four to 8 years.

The recent special signing of the Memorandum of Understanding between Adelaide Produce Markets and GungZhou Jiangnan Fruit and Vegetable Market is a prime example of the FTAs working for local growers.

Industry cannot just put their feet up and expect Chinese buyers to come rushing in with orders. They need to be proactive and get out there. They need to market their wares and really have a crack. As the Winemakers' Federation of Australia Chief Executive Paul Evans said on the China FTA:

The potential of how much value we can derive from this announcement is really now back in the hands of industry.

China will become Australia's top wine export market in value, even without the new FTA. With exports surging into China, the FTA will allow us to build on our strength that we have in the market, claiming a more dominant position. With China's middle class growing at levels that are hard to get your head around, this is an exciting time for Australian winemakers.

Our wineries are not the only ones who will be hoping that they can succeed, or will succeed, at taking advantage of the opportunities presented. There are a series of associated companies in the supply chain that will benefit, such as Lallemand at Edwardstown in my electorate and Collotype Labels at Mile End, as well as transport companies, professional advisers and contractors, and the list goes on. There will be more work for everyone as part of the supply chain and for services in those sectors that will benefit from the China FTA. I have just a quick note on Collotype as it is a great success story. It started in 1903 as a small print shop, which took its name from the best reproduction process of the day, collotype. Today this print shop has grown to become the world's largest and most awarded premium wine label printer. It is a great success story.

Wine is not the only industry that is going to get a boost from the free trade agreement. South Australian Premier Jay Weatherill said:

This free trade agreement ... will also have a particular effect on particular food characteristics, such as wine, meat, dairy produce, seafood.

China is our largest trading partner. China also is our fastest-growing trading partner. This free trade agreement will give us the impetus to grow that trade opportunity even further.

Hagen Stehr from the Stehr Group said that the China FTA will open a new market, and they are hoping to export 200 tonnes of tuna to China next year. Catherine Barnett, Chief Executive Officer of Food SA said that the free trade agreement provided a gift for food industries in South Australia. She said:

It is now up to businesses to seize this opportunity to grow by being smart with their marketing, branding and positioning.

Darren Thomas, owner of South Australia's largest meat exporter, Thomas Foods International, said that the tariff reduction would allow the meat industry to be more competitive especially against the New Zealand market. He said:

We certainly have had a heightened focus on China with the Free Trade Agreement in mind. We are working closely with our clients to ensure they are aware of the benefit of the FTA.

Companies like Thomas Foods are based all around Australia but their head office and corporate facilities are in Adelaide. You get the professional services and people in the metropolitan regions benefit from what happens throughout the country.

Finally, I am a supporter of trade and companies that export. I worked in London for two years for the South Australian government promoting South Australia to Europe and saw, firsthand, the difficulties that companies have in accessing foreign markets. That is why the free trade agreements are so important, to give us that access and to give us those avenues. This is a unique opportunity to grow our economy. We must all act immediately to take advantage of the potential from increased trade with China in the best interests of our country.

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