Sarah Henderson (Corangamite, Liberal Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. Will the Prime Minister explain to the House how the three free trade agreements delivered by the government will help businesses in my electorate and right around the country gain access to new markets?

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

What a great question from a great local member. She understands that trade means jobs and more trade means more jobs here in Australia. For six years members opposite were talking about free trade agreements and they delivered almost nothing. But after years and years of talk from members opposite, within 12 months the Minister for Trade had the trade trifecta—free trade agreements with Japan, with Korea and with China; free trade agreements covering 61 per cent of our merchandise exports. What that means is better markets for Australian farmers, better markets for Australian manufacturers and lower prices for Australian consumers.

The free trade agreement with Japan came into force on 15 January. It provides much better access for our key agricultural products—beef, cheese, horticulture and wine. It is a great windfall for Australian beef—by far our biggest agricultural export to Japan. It is a $1.4 billion trade now. Tariffs will come down from almost 40 per cent to under 20 per cent as a result of this deal. The free trade agreement with Korea means that cars are cheaper already in this country. The free trade agreement with China means that when it is fully in place 93 per cent of our exports will go into China absolutely duty free. All of this is giving our manufacturers and our exporters a competitive advantage that they did not previously have.

Last week, I was at Bulla Dairy Foods in Colac with the member for Corangamite. This is a 100-year-old Australian family company now employing 500 people. Thanks to the free trade agreement, Bulla Dairy Foods will have a 10 to 19 per cent competitive advantage in its deals with China that it does not now have. The Australian Lamb Company—again, in Colac—is a local business employing 400 people. Under the free trade agreements, sheepmeat to China is duty free and sheepmeat to Japan is duty free. As a result of these deals, the Australian Lamb Company is putting on 25 more staff. That is good news from this government for the people of Colac. What we are on about is a stronger economy with more prosperous businesses, more jobs and happier families. That is what this government is delivering.