The historical impact of the China-Australia Free Trade Agreement on freight transportation is far-reaching, covering multiple aspects such as the economy, trade, industry, and international cooperation. Specifically, it is as follows:
I. Economy and Trade: Bilateral trade volume surges, tariff reduction directly boosts growth
Trade scale expansion
After the agreement came into effect, the bilateral trade volume between China and Australia has grown rapidly. Take agricultural products as an example, the trade volume increased by 187% from 2015 to 2024. Among them, the export growth rate of Australian health products to China was significant, with the import amount increasing by 21.3% year-on-year in 2023, becoming one of the most dynamic categories in bilateral trade.
Tariff reduction benefits
China's exports to Australia: After the implementation of the agreement, Chinese products exported to Australia have cumulatively obtained about 1.66 billion US dollars in tariff reductions. About 1.6 billion US dollars (96.45%) of the reductions were achieved within three years after the agreement took effect, with 1.02 billion US dollars (61.45%) being reduced on the effective date of the agreement. The five major categories of clothing, leather, electronic machinery, steel and metal products, and chemical products accounted for more than 91% of the reduction amount.
Australia's exports to China: About 1.001 billion US dollars in tariff reductions were obtained, with 300 million US dollars being reduced on the effective date of the agreement, and the remaining 700 million US dollars being gradually realized during the transition period. Energy, steel and metal products, beef, wool, dairy products and other agricultural products benefited significantly. For example, tariffs on coke were immediately abolished, and tariffs on thermal coal were reduced to zero within two years.
Trade structure optimization
Chinese manufacturing products (such as textiles, clothing, toys, sports equipment) have expanded their market share in Australia and enhanced their competitiveness due to the reduction in tariffs.
Australian resource, energy and manufacturing exports (such as iron ore, coal, dairy products) have achieved complete tax exemption within four years, and services (finance, education, health) have entered the Chinese market, promoting economic diversification.
II. Industrial cooperation: Complementary advantages are released, driving domestic industrial upgrading
Agriculture and resource sector
The export of Australian agricultural products to China has increased. For example, tariffs on beef will be reduced to zero within 10 years (currently 15.5%), tariffs on dairy products will be reduced to zero within 5 to 12 years (currently 12.3%), and tariffs on wine will be reduced to zero within 5 years (currently 34.7%). This not only meets the needs of China's consumption upgrade but also promotes the specialized development of Australian agriculture.
China's import tariffs on Australian energy and mineral products (such as coking coal, thermal coal, alumina) have been immediately or gradually abolished, providing low-cost resource support for industrialization.
Synergy between manufacturing and services
The export costs of Chinese manufacturing products have decreased, such as tariffs on steel and metal products being reduced to zero within 5 years (currently at a high rate), promoting the scale development of the industry.
Australia's services (finance, education, tourism) have been opened to China in a negative list mode, making it the first developed economy to make such a commitment to China, promoting complementary trade in services between the two countries.
Driving domestic industrial upgrading
The reduction in tariffs on dairy products and others has prompted domestic enterprises to shift from extensive production to refined processing, and to cooperate with Australian enterprises in packaging and reprocessing, increasing added value.
The "white list" mechanism for cross-border e-commerce simplifies the filing process, and the efficiency of bonded warehouse customs clearance has been significantly improved, promoting the digital transformation of enterprises.
III. Institutional innovation: High-standard rule alignment, enhancing the level of openness
Negative list management
Australia has become the first country to open its service sector to China in a negative list mode, covering areas such as finance, education, and health, demonstrating its determination for institutional openness.
Breaking through non-tariff barriers
The agreement includes "21st-century economic and trade issues" such as government procurement, intellectual property protection, and competition policy, unifying product certification standards and reducing compliance costs for enterprises. For example, Australian health product enterprises have expanded their market channels in China through the unified certification standards under the agreement.
Upgrading trade facilitation
The electronicization of origin certificates has shortened the verification time from one week to 1-2 working days, improving customs clearance efficiency. In emergency situations, it is possible to complete the filing procedures before the products are loaded onto the plane.
The "white list" mechanism for cross-border e-commerce simplifies the filing process, and the efficiency of bonded warehouse customs clearance has been significantly improved, promoting trade digitalization. IV. International Cooperation: Significant Demonstration Effect, Promoting Regional Economic Integration
Benchmark for the Asia-Pacific Free Trade Area
As a high-level free trade agreement signed between China and a major developed economy, the agreement provides a model for economic and trade arrangements in the Asia-Pacific region and promotes the process of regional economic integration.
Reconstruction of Global Value Chains
The complementary nature of industries between China and Australia (China's manufacturing + Australia's resource and service industries) has been deepened through the agreement, forming a more resilient regional value chain and enhancing the ability of both countries to cope with global uncertainties.
Public Opinion and Policy Support
Australian public opinion surveys show that the majority of the people believe the agreement is beneficial to Australia. Enterprises have expanded cooperation with China through platforms such as the China International Import Expo. In 2024, over 250 Australian enterprises participated in the 7th China International Import Expo, setting a new record.
The two countries have signed multiple cooperation documents in trade, customs inspection and quarantine, agriculture, tourism, and other fields, promoting cooperation to extend from traditional trade to high-end industries.
