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Australian and Chinese wool industries free trade

 
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加入时间: 2006/02/16
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文章时间: 2006-7-26 周三, 下午3:18    标题: Australian and Chinese wool industries free trade 引用回复

The wool industries in both Australia and China have much to gain from a Free Trade Agreement (FTA) between the two countries, according to a new report released today by Australian Wool Innovation Limited (AWI).

The report by ITS Global shows the Australian wool industry could expect that the inclusion of wool in an Australia-China FTA would result in an increase in wool production of up to ten per cent and increases in farm cash income of up to seven per cent over and above that which would occur without an FTA.

The report was commissioned by AWI to investigate the impact of an Australia-China FTA on the industries both in Australia and in China.

It found the industries in both countries are extremely complementary, with Australia supplying 75 per cent of China’s wool needs and China taking some 50 per cent of Australia’s total wool exports.

The report confirmed there is very little competition between the wool types produced in the two countries, and as a result there are enormous opportunities for both industries to benefit from a freeing up of the trade.

The negotiations between Australia and China for a Free Trade Agreement have not formally begun, but AWI is working closely with the Australian Government to ensure the full benefits of a freeing up of the trade are understood by the industries in both countries.

AWI today also announced a China Free Trade Committee, a sub group of the broader AWI Trade Committee, which will be responsible for liaising with government and informing the Australian wool industry as the negotiations progress.

Chair of the Committee and Deputy Chair of AWI, Brian van Rooyen, said it was critical that the Australian industry understood the importance of this issue.

"The industries in both countries have much to gain from wool’s inclusion in an Australia-China FTA. Over the next five years China will command 62 per cent of global apparel wool demand. If Australia is to benefit from this expansion, restrictions to trade must be removed," Mr van Rooyen said.

Currently a global tariff rate quota (TRQ) system operates on greasy and lightly processed wool. Wool sold over and above the quota attracts a duty of 38 per cent which creates a significant disincentive for demand for Australian wool once the quota has been reached.

The ITS Global Report found that removal of the TRQ would result in the volume of Australian greasy wool exports to China increasing by up to 20 per cent over and above the expected increase in the trade without an FTA. More importantly, removal of the duties would see China able to become more competitive in global markets, promoting demand for wool and woollen textiles.

AWI already has a strong involvement in China through a newly opened office in Shanghai, focused on building alliances with key players in the knitwear, menswear and womenswear market segments. AWI also has a representative based in Beijing, working on improving market access, in particular the development of the Australia-China FTA.

Members of the AWI China Free Trade Committee:

Brian van Rooyen, Deputy Chairman, AWI (Chair)
Steven Read, General Manager BWK Elders
Ian Ashman, General Manager Customer Relations, Australian Wool Testing Authority
Pascal Senkoff, General Manager of Trade, AWI
Geoff Fisken, WoolProducers
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