John Madigan (Victoria, Democratic Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Trade and Investment, Senator Cormann. The Australian today announced that Mr Abbott and the President of China will sign a memorandum of understanding on an Australia-China free trade agreement. This free trade agreement is likely to ensure that 85 per cent of Australian exports will enter China tariff free. The three per cent tariff on coking coal that China has imposed recently will possibly be removed and the Foreign Investment Review Board threshold for foreign investment by privately held Chinese firms will increase to over $1 billion. Can the minister outline what percentage of Chinese exports to Australia currently attract no Australian tariffs?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I thank Senator Madigan for his question. I can confirm for the chamber that this morning the Prime Minister and President Xi announced the conclusion of negotiations for a free trade agreement. After more than 10 years of negotiations, the Minister for Trade and Investment, Minister Robb, and his Chinese counterpart, Minister Gao, will later today sign a declaration of intent, which is an undertaking to prepare the text of the agreement for signature. The Prime Minister said already that the government will release details of the outcome soon.

This is a historic agreement. It is a high-quality free trade agreement which will open up significant opportunities for Australia in the world's second-largest economy and our largest trading partner. It will ensure the competitiveness of our agriculture, industrial goods and manufacturing industries, it advances and protects access for our service providers and it will attract greater investment into Australia, driving growth and creating jobs.

John Madigan (Victoria, Democratic Labor Party) Share this | Link to this | Hansard source

Mr President, a point of order on relevance: I asked what percentage of Chinese exports to Australia currently attract no Australian tariffs.

Stephen Parry (President) Share this | Link to this | Hansard source

The minister has 55 seconds left to answer the question. I remind the minister of the question.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

As part of the announcement that will be made later today and subsequent announcements, the Minister for Trade and Investment will deal will all of these sorts of issues at the time when the government is in a position to release the formal details of the agreement that has been reached. The free trade agreement to be announced today complements the free trade agreements—

John Madigan (Victoria, Democratic Labor Party) Share this | Link to this | Hansard source

Mr President, I rise on a point of order on relevance. Senator Cormann, it is a pretty simple question: what percentage of China's exports to Australia currently attract no Australian tariffs? Surely to God the government knows that.

Stephen Parry (President) Share this | Link to this | Hansard source

I remind the minister of the question.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I appreciate that question. I of course am only the Minister representing the Minister for Trade and Investment in this chamber. I will take that part of the question on notice and provide an answer to Senator Madigan, but I would point out that together the free trade agreements in relation to Korea, Japan and China cover 39 per cent of Australia's total trade, which is a very significant proportion of our total trade.

John Madigan (Victoria, Democratic Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Considering that the three per cent tariff on coking coal was only introduced recently, does the government believe it is a possibility that the tariff was predominantly introduced only as a bargaining chip?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Our focus as a government, led by Minister Robb, was to achieve the best possible deal for Australia in our national interest. Minister Robb has done an outstanding job over the last 12 months in not only successfully concluding free trade agreements with Japan and South Korea but also now reaching a successful conclusion in relation to a free trade agreement with China. I am not a commentator on what happens in these negotiations except to say that the government is very, very pleased with the deal that has been achieved, which is a significant advance when it comes to trade opportunities for Australia in what is one of our most important markets. More trade means more jobs. More trade means stronger economic growth in Australia. Today really is a very good day for Australia.

John Madigan (Victoria, Democratic Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister outline what percentage of foreign investment from China in Australia is by solely privately owned companies and what percentage is from state-owned companies?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I will take that question on notice and provide Senator Madigan with an answer.