Crowe Horwath, one of Australia’s largest accounting firms, has welcomed the signing of the China Free Trade agreement, describing it as a ‘Win Win’.

“Its a win for Australian households and a win for Australian businesses,” said Russell Wilkinson, Crowe Horwath’s National Head of Customs and International Trade.

“In short, the agreement will allow for better market access to the Chinese economy, improve Australia’s competitive position in a rapidly growing market, promote two-way investment and reduce import costs.

“Eighty five per cent of Australian goods will be tariff free immediately on implementation, expected by the end of this year, rising to 95% two years later.”

“Of course one the biggest winners in the business sector will be Australian agribusiness. Tariffs will be progressively abolished for the dairy industry. Beef and sheep farmers will benefit from the abolition of tariffs from 12-25% and all tariffs on Australian horticulture will be eliminated on implementation.”

“In the mining and energy sector tariffs will be removed on almost all Australian resources and energy products including coking coal.”

“Local manufacturing will also receive a boost with a wide range of goods including pharmaceutical products having tariffs eliminated.”

“On the import side, Passenger Motor Vehicle (PMV) imports with engines sizes less than three litres will attract zero tariff from implementation and PMV’s with engines greater than three litres will be tariff-free from January 1, 2018, mirroring arrangements for Japanese and Korean PMV imports. “

“This agreement has been a more than a decade in the making. Formal negotiations commenced in 2005 following a joint feasibility study. I think all parties can be pleased with the outcome and there is no question that it is a good thing for the Australian economy and society. The government is to be congratulated for a land mark achievement,” Mr Wilkinson said.

The post China Free Trade a Win Win appeared first on AdviserVoice.