TASMANIAN fishers are waiting with bated breath to discover what impact an Australia-China free trade deal to be signed in Canberra today will have on the state’s seafood sector. Prime Minister Tony Abbott and Chinese President Xi Jinping will today seal the agreement, which is understood to include significant tariff reductions for Australian seafood imported into China. Exact details of the deal remain a closely guarded secret, but it is understood that existing seafood tariffs of about 15 per cent will be phased out. Tasmanian Rock Lobster Fishermen’s Association executive officer John Sansom said the deal’s impact on the state’s fishing industries could be massive. ‘‘Abolishing or phasing out these import duties would finally put us on an even playing field with our competitors overseas,’’ he said. ‘‘All sectors of the industry could benefit when the savings are distributed along the supply chain.’’ Australia’s major rivals in the rock lobster and abalone trade, New Zealand and Chile, do not pay tariffs on their imports into China. Up to 90 per cent of Australia’s lobster and abalone ends up in the Chinese market, with lobster exports alone contributing more than $65 million a year to the Tasmanian economy. Oyster and scallop exports are also immensely lucrative. Bass Liberal MHR Andrew Nikolic said the deal would not see Tasmanian lobster and abalone production explode, as the sector operated under strict quotas, but would instead result in better returns for producers. ‘‘Increased Chinese interest, attention and demand for these premium Tasmanian products will see local producers experience enormous growth,’’ he said. Economist Philip Bayley said the deal could be a game-changer for Tasmania, but was not a silver bullet. ‘‘Domestic markets remain far more important for most Tasmanian businesses, and for most primary producers and manufacturers the logistics challenges of getting products off the island remain critical,’’ he said. Australian Greens trade spokesman Peter Whish-Wilson said the deal raised serious concerns, with Australia also expected to remove up to $1 billion in its import duties. ‘‘Tariffs still make up a sizeable part of the government’s revenue base and the Henry Review highlighted that if future trade deals erode this, then alternative revenue streams will have to be found,’’ Senator Whish-Wilson said. ‘‘On Monday, when Tony Abbott announces more details about the China FTA, a major question he has to be upfront about it is how much it will cost the budget in revenue.’’
TASMANIAN fishers are waiting with bated breath to discover what impact an Australia-China free trade deal to be signed in Canberra today will have on the state’s seafood sector.
Prime Minister Tony Abbott and Chinese President Xi Jinping will today seal the agreement, which is understood to include significant tariff reductions for Australian seafood imported into China.
Exact details of the deal remain a closely guarded secret, but it is understood that existing seafood tariffs of about 15 per cent will be phased out.
Tasmanian Rock Lobster Fishermen’s Association executive officer John Sansom said the deal’s impact on the state’s fishing industries could be massive.
‘‘Abolishing or phasing out these import duties would finally put us on an even playing field with our competitors overseas,’’ he said.
‘‘All sectors of the industry could benefit when the savings are distributed along the supply chain.’’
Australia’s major rivals in the rock lobster and abalone trade, New Zealand and Chile, do not pay tariffs on their imports into China.
Up to 90 per cent of Australia’s lobster and abalone ends up in the Chinese market, with lobster exports alone contributing more than $65 million a year to the Tasmanian economy.
Oyster and scallop exports are also immensely lucrative.
Bass Liberal MHR Andrew Nikolic said the deal would not see Tasmanian lobster and abalone production explode, as the sector operated under strict quotas, but would instead result in better returns for producers.
‘‘Increased Chinese interest, attention and demand for these premium Tasmanian products will see local producers experience enormous growth,’’ he said.
Economist Philip Bayley said the deal could be a game-changer for Tasmania, but was not a silver bullet.
‘‘Domestic markets remain far more important for most Tasmanian businesses, and for most primary producers and manufacturers the logistics challenges of getting products off the island remain critical,’’ he said.
Australian Greens trade spokesman Peter Whish-Wilson said the deal raised serious concerns, with Australia also expected to remove up to $1 billion in its import duties.
‘‘Tariffs still make up a sizeable part of the government’s revenue base and the Henry Review highlighted that if future trade deals erode this, then alternative revenue streams will have to be found,’’ Senator Whish-Wilson said.
‘‘On Monday, when Tony Abbott announces more details about the China FTA, a major question he has to be upfront about it is how much it will cost the budget in revenue.’’
