Representatives of the governments of China and Australia in June 2015 signed a free trade agreement.
Once the China-Australia free trade agreement enters into force and is effective, 85.4% of merchandise in both countries will be duty-free. The percentage of duty-free goods will ultimately be phased in for tariff items and trade value at 100% in Australia and at 96.8% and 97%, respectively, in China. These tariff reduction rates exceeded other free trade agreement tariff reduction rates (generally, approximately 90%).
Based on preliminary calculation, the customs duty of export merchandise from China to Australia will be reduced, with Chinese goods having a comparatively high reduction of customs duty to include clothes, leather, electronics and machines, other manufactures, steel and metal products, and chemicals. Australian goods that can have a comparatively high reduction of customs duty include energy, steel and metal products, and beef, wool, dairy, and other farm products.
Read a June 2015 report (PDF 425 KB) prepared by the KPMG member firm in China: China-Australia Free Trade Agreement (ChAFTA) Officially Finalised and Signed
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