John Williams (NSW, National Party) Share this | Link to this | Hansard source

My question is to the very alert Minister, Senator Ronaldson, representing the Minister for Industry. Will the minister advise the Senate how the China-Australia Free Trade Agreement will benefit the Australian energy and resources sector?

Michael Ronaldson (Victoria, Liberal Party, Minister for Veterans’ Affairs) Share this | Link to this | Hansard source

I can only hope that I can aim to be as alert as Senator Williams is. It is with a great deal of pleasure that I will answer this question. The signing of the historic China-Australia Free Trade Agreement, ChAFTA, will unlock significant benefits in export opportunities for the Australian energy and resources sector.

Our exporters will benefit from greater certainty, with ChAFTA locking in zero tariffs for major resources and energy products, including iron ore, gold, true petroleum oils and liquefied natural gas. Other energy and resources products will be duty free within four years. At present, tariffs on these products are as high as eight per cent.

Australia's third-largest export to China, coking coal, will have its three per cent tariff eliminated on day one of the agreement. This represents exports worth around $6 billion. Tariffs of six per cent on non-coking coal, an industry work $3 billion, will be eliminated within two years. Transformed resources and energy products will also benefit massively under ChAFTA. A large number of tariffs will be eliminated immediately on the agreement coming into effect. These include tariffs on unwrought refined copper and all alloys, an industry worth $2 billion; alumina, an industry worth around $1.3 billion; nickel metals and oxides, an industry worth $662 million; unwrought zinc, worth about $300 million; unwrought nickel, worth about $154 million; titanium wires and titanium dioxide, with exports worth $154 million; and copper waste and scrap, with exports worth $295 million.

The Australian aluminium industry will also enjoy far greater access. Indeed, ChAFTA gives our energy and resources sector an unprecedented and unrivalled level of access to the Chinese market. (Time expired)

John Williams (NSW, National Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister outline to the Senate how the China-Australia Free Trade Agreement will benefit Australian manufacturers?

Michael Ronaldson (Victoria, Liberal Party, Minister for Veterans’ Affairs) Share this | Link to this | Hansard source

Again, I thank Senator Williams for that excellent question. As with the energy and resources sector, this agreement represents an unprecedented level of access to the Chinese market, helping to ensure that Australia's manufacturing sector will continue to thrive into the future.

This agreement creates new opportunities for Australian manufacturers, including those seeking to supply goods to China's rapidly-expanding middle class. Tariffs of up to 10 per cent on pharmaceutical and vitamin products will be phased out within four years. The automotive sector will gain from the elimination of a 10 per cent tariff on Australian-made engines. There will be even further gains for Australian aluminium in the form of finished products, such as plates and sheets, worth about $31 million.

In addition, manufacturers and other industries will benefit from greater certainty by the locking in of zero per cent tariffs on a range of other manufactured products, including woodchips, pine products, some electrical and communications equipment and some paper based products. (Time expired)

John Williams (NSW, National Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Will the minister further advise the Senate of the importance of the Chinese market for Australia's energy, resources and manufacturing sectors and how these sectors will benefit from the China-Australia Free Trade Agreement going forward?

Michael Ronaldson (Victoria, Liberal Party, Minister for Veterans’ Affairs) Share this | Link to this | Hansard source

Again, I thank Senator Williams for that excellent question.

As I said earlier on, access for the Australian market is unprecedented. This historic agreement will give all sectors of the resource and energy industries greater access. We are set to go from strength to strength in relation to these two areas as a result of the removal of these tariffs. Access to the Chinese market, as I said, will provide a huge boost, and on full implementation of this agreement a staggering 99.9 per cent of current exports will be totally tariff free.

This agreement again shows that Australia is open for business. The Australian people only need to look today at who asked what questions about this Chinese FTA. The Australian Labor Party and the Australian Greens—negative and carping, refusing to acknowledge— (Time expired)