Bridget McKenzie (Victoria, National Party) Share this | Link to this | Hansard source

My question is to the Leader of the Government in the Senate and the Minister representing the Minister for Agriculture, Senator Abetz. Yesterday the Prime Minister and President Xi announced the outcome of negotiations on the Australia-China Free Trade Agreement, which was brought home by the Minister for Trade and Investment in the last 12 months. Can the minister outline to the Senate the benefits which the Australia-China Free Trade Agreement will deliver for Australian agricultural products.

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

Mr President, it is appropriate that a coalition senator from the state of Victoria should be asking this question, because Victoria is Australia's largest food and fibre exporting state and so it is particularly well placed to reap the benefits of this free trade agreement. China is Australia's most important agriculture market, with exports worth around $9,000 million and growing rapidly. The opportunities are massive. China is expected to account for nearly half of global growth in food demand to 2050.

This free trade agreement positions Australian farmers and exporters to take advantage of China's growth. It addresses our current competitive disadvantage in some products such as dairy, lamb and wine, with New Zealand and Chile, who have free trade agreements with China. It locks in an advantage on products such as a beef against the United States and Brazil. This is a great deal for Australian dairy, with all tariffs being eliminated. China's wine import market is growing dramatically—$1.6 billion worth in 2013. Of course, Senator, that will benefit the Yarra Valley in your home state of Victoria.

Under the agreement, the tariffs on beef exports to China, worth $722 million, will be eliminated. And similarly, all tariffs on horticultural products will be eliminated. Tariffs on hides, skins and leathers will be eliminated. The list goes on: barley tariffs will go, tariffs on live animal exports will go, tariffs on orange juice, honey, pasta, chocolate, canned tomatoes—you name it—will go. This is a great agreement for the state of Victoria and for our nation. (Time expired)

Bridget McKenzie (Victoria, National Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Following New Zealand's conclusion of an FTA with China, New Zealand sales of dairy products increased sixfold. Can the minister inform the Senate how the Australia-China FTA will help Australian dairy farmers, particularly those in my home state of Victoria, access the Chinese market.

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

There is no doubt that our dairy farmers will benefit enormously from this agreement. Indeed, the Australian Dairy Industry Council chair, Noel Campbell, expressed it like this:

[The free trade] agreement will allow the [Australian dairy] industry to flourish and capitalise upon robust demand in the Chinese market.

[It] will strengthen Australian dairy’s competitiveness by providing [the Australian dairy] industry with a significant advantage compared to other countries in the market that do not have a FTA with China …

China is already Australia's second largest market for dairy exports. New Zealand's dairy produce already receives a considerable tariff advantage under its bilateral free trade agreement with China. This free trade agreement will progressively close this gap. Tariffs will be eliminated across all dairy products. This is great news for Victoria. (Time expired)

Bridget McKenzie (Victoria, National Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. It is not only my home state that will benefit. I recently enjoyed some fabulous fresh produce from Mures, and I can attest that Tasmania's seafood industries enjoy an international reputation for clean, quality produce.

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

A question, Senator McKenzie.

Bridget McKenzie (Victoria, National Party) Share this | Link to this | Hansard source

Can the minister inform the Senate how the FTA will help the Tasmanian seafood industry increase its exports to China?

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

Mr President, the senator is quite right to concentrate on issues Tasmanian, but there are also other advantages that flow to the rest of the nation. The China-Australia Free Trade Agreement is unequivocally good news for all Tasmanians, especially job seekers and small and big employers in Tasmania. And the seafood industries being included in this free trade agreement is genuinely a breakthrough. I know that Senator McKenzie and her coalition Senate colleagues were very anxious to achieve this outcome. I pay particular tribute to Senator Richard Colbeck, who championed this cause within government to ensure this outcome. It is a great outcome, because right around Australia—something that is often forgotten—an estimated 8,500 jobs rely on this sector and they now have— (Time expired)