Free trade agreements (FTAs) in Force

​​Australia has concluded FTAs with:

  • China (ChAFTA – effective 20 December 2016)
  • Japan (JAEPA – effective 15 January 2015)
  • The Republic of Korea (KAFTA – effective 12 December 2014)
  • New Zealand (A NZCERTA – effective 1 January 1983)
  • Singapore (SAFTA – effective 28 July 2003)
  • United States (AUSFTA – effective 1 January 2005)
  • Thailand (TAFTA – effective 1 January 2005)
  • Chile (Australia–Chile FTA – effective 6 March 2009)
  • the ASEAN–Australia–New Zealand Free Trade Area (AANZFTA – effective 1 January 2010)
  • Malaysia (MAFTA – effective 1 January 2013).

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ChAFTA

The China-Australia Free Trade Agreement (ChAFTA) was signed on 17 June 2015 and entered into force on 20 December 2015. ChAFTA has delivered two tariff cuts to date, one on entry into force and a second round on 1 January 2016. The agreement provides significant opportunities for Australia’s agriculture, food, fishery and forestry products by eliminating tariffs on a wide range of our exports including beef, sheepmeat, livestock, dairy, wine, seafood, horticulture, hides and skins, barley and sorghum and some other grains. China was Australia’s largest trading partner for agriculture exports worth $10.9 billion in 2015.

The full text of ChAFTA and detailed information about the outcomes are publicly available on the Department of Foreign Affairs and Trade website. To take full advantage of the agreement, businesses are encouraged to refer to a new step by step guide on ChAFTA. Guide to using ChAFTA to export and import goods.

To find out more about tariff reductions under ChAFTA or Australia’s other recent FTAs across multiple products, visit the Australian Government’s FTA Portal

For more information on import and export conditions, please see BICON and MICoR.

Media release: ChAFTA to enter into force

JAEPA

TThe Japan-Australia Economic Partnership Agreement (JAEPA) was signed on 8 July 2014 and entered into force on 15 January 2015. JAEPA has delivered three tariff cuts to date: one on entry into force, one on 1 April 2015, and one on 1 April 2016, along with increased preferential quotas for Australian agricultural exports. The agreement provides valuable preferential access for Australia's agricultural exports by eliminating or significantly reducing tariffs on a wide range of Australian exports including beef, wine, horticulture, seafood, grains and sugar over timeframes of up to 18 years.

JAEPA also includes new quota access for a range of products. Details on quota management arrangements. To stay up-to-date on the Japanese quotas, interested parties can join the subscription list by emailing Quota Admin with your details and ‘Subscribe’ in the heading.

The full text of JAEPA is publicly available on the Department of Foreign Affairs and Trade website. To take full advantage of the agreement, businesses are encouraged to refer to a new step by step guide on JAEPA. Guide to using JAEPA to export and import goods.

To find out more about tariff reductions under JAEPA or Australia’s other recent FTAs across multiple products, visit the Australian Government’s FTA portal.

Media release: First day of trade under JAEPA

KAFTA

The Korea-Australia Free Trade Agreement (KAFTA) was signed on 8 April 2014 and entered into force on 12 December 2014. It has delivered three tariff cuts in quick succession: one on entry into force, a second on 1 January 2015 and a third on 1 January 2016. KAFTA is a strong and liberalising agreement for agriculture that secures improved market access through elimination of very high tariffs on a wide range of exports including beef, wheat, sugar, dairy, wine, horticulture and seafood. The full text of KAFTA is publicly available on the Department of Foreign Affairs and Trade website. To take full advantage of the agreement, businesses are encouraged to refer to a new step by step guide on KAFTA. Guide to using KAFTA to export and import goods.

To find out more about tariff reductions under KAFTA or Australia’s other recent FTAs across multiple products, visit the Australian Government’s FTA portal.

Media release: Ag exports to Korea continue to boom with more tariff cuts

ANZCERTA

The Australia New Zealand Closer Economic Relations and Trade Agreement (ANZCERTA), came into effect on 1 January 1983 and is central to the Australia-New Zealand trade and economic relationship. ANZCERTA is one of the world’s most open and successful free trade agreements.

As well as underpinning bilateral trade in goods and services, ANZCERTA is the umbrella for close collaboration across biosecurity, customs, transport, regulatory and product standards and business law issues. ANZCERTA does not affect Australia or New Zealand’s ability to impose biosecurity measures to protect animal, plant and human health.

The final text of the agreement is available on the Department of Foreign Affairs and Trade website.

SAFTA

The Singapore-Australia Free Trade Agreement was signed on 17 February 2003 and entered into force on 28 July 2003. SAFTA eliminated tariffs on all goods from entry into force of the Agreement and precludes the use of export subsidies and the application of safeguard measures against each other.

The final text of the agreement is available on the Department of Foreign Affairs and Trade website.

AUSFTA

Overview

The Australia-United States Free Trade Agreement (AUSFTA) came into force on 1 January 2005.

The Agreement provides for increased market access for most Australian agricultural products and the elimination of tariffs over time on almost all US agricultural tariff lines.

The Agreement also provides for increased duty free access for certain agricultural products in the form of tariff rate quotas. Quotas under the Agreement apply to beef, certain dairy products, tobacco, cotton, peanuts, and avocados.

All Australian agricultural tariffs were eliminated immediately when the Agreement entered into force. Most of these tariffs are already zero. The remainder are currently applied at 4 or 5 percent (except for a small number of dairy tariffs, which are $1.22/kg).

Australia’s biosecurity and food safety regimes remain unchanged under the Agreement. Both Australia and the US reaffirmed that decisions on matters affecting biosecurity and food safety will be based only on science.

Key outcomes for agricultural products

Beef

The Agreement eliminates all US beef tariffs over time, with the previous in-quota tariff of 4.4 US cents/kg eliminated from 1 January 2005 and the 26.4 per cent over-quota tariff will be reduced to zero over 18 years. There is to be an 18-year phase out of the out-of-quota duty beginning in year 9, with one-third of the duty phased out in years 9-13 and the remainder in years 14-18.

The Agreement also provides for increasing quota access during the 18 year tariff elimination period. The valuable annual quota for Australian beef exports to the United States expanded by 20,000 tonnes to 398,214 tonnes in 2007, increasing progressively to 448,214 tonnes in 2023. The estimated additional value to Australian beef exporters in 2023 is around $245 million if the quota is fully utilised.

From year 19, all Australian beef will be free to enter the US market without tariff or quota restrictions and subject only to a price-based safeguard. This safeguard applies to exports over a specified amount based on growth from the quota in year 18. The US also has discretion to not apply the safeguard.

Dairy

The Agreement provided for the immediate elimination of all in-quota tariffs on dairy products exported from Australia and the reduction of out-of quota tariffs over 18 years.

The Agreement also allowed for duty free access for an increased range of Australian dairy products. In 2005 access for Australian dairy producers expanded by 27,350 tonnes and became available for certain cheeses, butter, milk, cream and ice-cream products which had been unable to obtain access to the US market.

Under the Agreement the value of Australia’s annual exports of dairy products affected by US tariff rate quotas increased from around $36 million to around $95-100 million in 2005. Duty-free quota volumes will continue to grow at around 5 per cent per annum after year 20.

Horticulture

The Agreement increased duty free access to 99 per cent. It eliminated tariffs for a range of horticultural products including:

  • Cut flowers (previously tariffs of up to 6.4 per cent).
  • Fresh mangoes (previously 6.6 US cents per kg)
  • Fresh tomatoes (previously seasonal tariffs of up to 3.9 US cents per kg)
  • Mandarins (previously 1.9 US cents per kg)
  • Olives (previously 8.8 US cents per kg)
  • Olive oil (previously 3.4 US cents per kg)
  • Fresh macadamia nuts (previously 5 US cents per kg)

For avocados the Agreement delivers conditional new market opportunities to Australian producers, eliminating the previously prohibitive tariff of 11.2 US cents per kilogram, and creating initial duty-free access to the US for 4,000 tonnes of Australian avocados after two years, growing by an additional 10 per cent each year. The 4,000 tonne duty free quota is divided into two seasonal periods, which cover the whole year. Over-quota tariffs will also be completely eliminated over 18 years.

For peanuts new market access was also created for 500 tonnes and products in 2005 with access growing by 3 per cent in each subsequent year, with tariffs eliminated over 18 years.

Prior to the implementation of the Agreement only two per cent of fresh Australian horticultural products entering the US was duty free.

Other agricultural products

The Agreement obtained improved access conditions for a range of other agricultural products exported to the US, including cotton seeds, wool, sheepmeat, seafood, wheat gluten, cereals, processed food and forest products. For detailed information on specific products see the United States tariff schedule.

Wine

The Agreement phased out tariffs on Australian wine entering the US market under a harmonisation scheme operating over 11 years. The value of this tariff elimination is expected to be around $38 million annually once full free trade is achieved.

The final text of the agreement is available on the Department of Foreign Affairs and Trade website.

TAFTA

Overview

The Thailand-Australia Free Trade Agreement (TAFTA) entered into force on 1 January 2005. Thailand’s high tariff barriers were either eliminated immediately, have since been phased out, or are being phased out over an agreed timeframe.

Key outcomes for agricultural products

Tariffs have already been eliminated for a range of agricultural commodities, including sheepmeat, hides and skins, wool and cotton, most fresh fruit and vegetables and a number of dairy products.

A number of agricultural products are subject to tariff rate quotas (TRQs) or special agricultural safeguards (SSGs) under TAFTA. These TRQs and SSGs are being progressively phased out and include products such as mandarins and fresh grapes which phase to zero per cent in 2015 with full tariff and quota elimination in 2016; and some cheese as well as beef and beef offal which phase to zero per cent in 2020 with tariff and quota elimination in 2021.

The final text of the agreement is available on the Department of Foreign Affairs and Trade website and includes further information regarding tariff rate quotas, SSGs and SSG quotas.

Australia – Chile FTA

Overview

The Australia - Chile FTA entered into force on 6 March 2009, as Australia’s first FTA with a Latin American country. This FTA presents Australia with new trade and investment opportunities in Chile, and enhances Australia’s relationship with Latin America in general.

Key outcomes for agricultural products

The FTA resulted in the immediate elimination of Chile’s tariffs for all meat and wine products, as well as on key dairy export lines. All remaining tariffs on both sides will be eliminated by year six of the agreement (2015) except for one component of Chile’s sugar tariff which will remain subject to its current ‘price band’ system.

Under a Memorandum of Understanding on Beef Grading, Chile agreed to establish recognition of Australia’s beef grading system. This agreement has provided the Australian red meat industry with significant cost savings when exporting to Chile.

The final text of the agreement is available on the Department of Foreign Affairs and Trade website.

AANZFTA

Overview

The Association of Southeast Asian Nations (ASEAN)-Australia-New Zealand Free Trade Agreement (AANZFTA) was the first plurilateral FTAs that Australia concluded. AANZFTA entered into force on 1 January 2010 for eight of the 12 signatories (Australia New Zealand, Brunei, Burma, Malaysia, the Philippines, Singapore and Vietnam). This was followed by Thailand in March 2010, Cambodia and Laos in March 2011 and Indonesia in January 2012.

AANZFTA will eliminate tariffs on 96 per cent of Australia’s current exports to ASEAN nations by 2020 (only 67 per cent of Australia’s exports to the region were tariff-free pre-AANZFTA).

Key outcomes for agricultural products

Australia secured a number of tariff reduction and elimination commitments that are of direct benefit for the Australian agriculture sector. These include but are not limited to:

  • Meat and livestock: most meat and live bovine animals phased to zero.
  • Dairy products: all lines phased to zero except some in Indonesia, Malaysia and the Philippines
  • Fish: majority phased to zero and remaining lines 5 per cent or less.
  • Wine and spirits: Phased to zero in the Philippines by 2015 and in Vietnam by 2022, excluded from tariff commitments by Indonesia and Malaysia.
  • Wool and cotton: all lines bound or phased to zero.

The final text of the agreement and further details on outcomes for Australian agricultural products are available on the Department of Foreign Affairs and Trade webiste.

MAFTA

Overview

The Malaysia-Australia Free Trade Agreement (MAFTA) was signed on 22 May 2012 and entered into force on 1 January 2013. The agreement builds on commitments made by both countries in Australia’s regional Free Trade Agreement with ASEAN and New Zealand (AANZFTA).

Key outcomes for agricultural products

MAFTA delivers important improvements to market access for a range of agricultural portfolio industries. These include:

  • annual increases in tariff quota volumes for liquid milk at zero tariff and liberalisation of the licensing arrangement for imports of liquid milk.
  • a phased reduction of rice tariffs from 2023, with all rice tariffs fully eliminated by 2026.
  • tariff elimination by 2016 on certain horticulture products, including melons, mangoes, pineapples and longans.
  • a commitment from Malaysia to pass on to Australian wine exporters any reduction or elimination of tariffs, or any treatment in the application of import licensing or other non-tariff measures, that Malaysia provides to wine imports from any other country.
The final text of the agreement is available on the Department of Foreign Affairs and Trade website.
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