THE free trade agreement between Australia and China exceeded all expectations, Tasmanian Farmers and Graziers Association chief executive Jan Davis said.
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Ms Davis said that she was "somewhat of a sceptic" when it came to free trade agreements — the reality is that, usually, free trade between countries does not exist.
"Liberalisation of trade may occur but free trade, no, unless you remove all tariffs, all trade protections, and the trading currencies are subject to the same market forces," she said.
"(This) agreement has been 10 long years in the making and it has delivered more than we might have hoped for.
"(It) will open bilateral investment opportunities in agriculture that have eluded us for far too long.
"China is Australia's largest agriculture and fisheries market, worth around $9 billion in 2013 and its demand for high-quality agriculture and food products is growing rapidly."
Ms Davis said that Tasmanian farmers already had strong relationships with Chinese customers.
"In 2011-12, they exported product worth more than $120 million to ASEAN countries ... more than 20 per cent of those exports were headed to China," she said.
"The signing of this FTA will enable our farmers to grow these relationships, and to open new markets.
"(But) it is important to understand that free trade agreements must deliver benefits to both parties.
"Tasmania is well placed to benefit from the expansion — in return, we will be able to provide knowledge and technology to assist Chinese farmers in improving their own productivity.
"We need to be clear that it is not a silver bullet and that people should not anticipate instant results."
Ms Davis said that Chinese tariffs on some Australian goods were being reduced, not eliminated, investment thresholds were being adjusted not abolished and the Chinese yuan was not subject to the same exchange rate volatility and uncertainty as the Australian dollar.
