- October 11, 2021
- Posted by: samdenis
Dr. Daniel Terrill is the lead partner of deloittes Agribusiness Client Service Group and director of the agricultural and environmental economics teams at Deloitte Access Economics. He`s a funny economist. Many other sectors of Australian agriculture will also benefit from the free trade agreement. However, not everything is good news for Australian agriculture. For agricultural industries that either do not export to China or are unable to reduce tariffs, there may be slight declines in production. This reflects both currency effects (the overall impact of the free trade agreement on Australia is dominated by benefits to the coal industry) and a general transfer of activity, including land relocations, to sectors that have become relatively profitable due to the reduction in tariffs. A bilateral free trade agreement with China will not only put Australia on an equal footing with other nations, but will also give us an advantage over some of the other major food and fiber competitors in the Chinese market. . Deloitte has extensive experience in helping companies of all sizes manage governance and compliance issues raised by IFRS to achieve best practices. Learn more about the solutions we offer to the consumer business industry.
If you have written this article and are not yet registered with RePEc, we recommend that you do so here. You can link your profile to this article. It also allows you to accept potential quotes on this article that we are not sure about. Existing tariffs on Australian beef imports into China range from 12% to 25% and our modelling is based on a complete elimination of tariffs within a decade. There is also an existing customs duty of 10% on live cattle. However, according to the Department of Foreign Affairs and Trade, many of Australia`s imports of live cattle into China are purebred and this type of live cattle import does not currently incur any tariffs. It is therefore the removal of tariffs on beef (unlike live cattle) that has the most direct impact on the Australian beef and veal industry. Because access to this document is restricted, you can search for another version of the document. While modeling such complex systems is a danger, our models, based simply on the removal of Chinese tariffs on Australian beef, have yielded some interesting results, including: Effects of the Sino-Australian Free Trade Agreement on the Australian agricultural industry have been recorded Please note that corrections may take a few weeks to filter out the various RePEc services. Australia`s food and fibre exports to China have increased significantly in recent years and there is great optimism that they will continue to do so. Indeed, the increase in demand from China has been one of the main reasons why the agricultural industry has recently been identified by Deloitte as an important growth sector of the Australian economy in the coming decades.