With Australia being a small country that has limited domestic market, exporting into other countries is one of the best options for it to grow its economy. Thus the need for the government to engage with several Free Trade Agreements (FTA’s) including:
- China-Australia Free Trade Agreement (ChAFTA)
- Japan-Australia Economic Partnership Agreement (JAEPA)
- Korea-Australia Free Trade Agreement (KAFTA)
- United States-Australia FTA (AUSFTA)
- India-Australia FTA
Through these FTAs, Australia is able to increase its export to these countries. Some additional benefits of exporting includes:
- Helps maintain a high employment level
- Gains global market share
- Enhanced domestic competitiveness
- Promotes diversification
- Compensates for seasonal demands
- Sells excess production capacity
- Expands life cycle of local produce
Major exports of Australia for 2016
The year 2016 has been a great year for Australian exports, as it went up by 23.2% since the global financial crisis in 2009. It has shipped approximately A$250 billion worth of goods most of which are these products:
- Ores, slag, ash
- Mineral fuels
- Gems, precious metals
- Machinery including computers
- Inorganic chemicals
- Optical, technical, medical apparatus
- Electrical machinery, equipment
Major exports of Australia for 2016
China is Australia’s largest trading partner. It accounts to 27.5% of Australia’s exports, which is equivalent to A$85.9 billion. This went up by 2% or roughly A$1.7 billion for 2016 and is still looking very promising, especially with ChAFTA coming into effect.
Below is a list of the major exports of Australia to China for 2016.
Major exports of Australia to China for 2016
Wine exports to China to increase
Interestingly, wine exports to China is also expected to increase this 2017. It overtook the USA, which makes it the biggest buyer of Australian wine. The growth increased from $370 million to $520 million by the end of last year according to the annual figures released by Wine Australia.
The increase in wine export to China is attributed to the continual tariff reduction of sparkling and bottled wine brought about by ChAFTA.
“On January 1, 2017, tariffs fell again under the China-Australia Free Trade Agreement (ChAFTA) to 5.6% on sparkling and bottled wine and 8% on bulk wine, and they will be fully eliminated in 2019.
“So that helps our competitiveness,” Wine Australia chief executive Andreas Clark.
Australia exports about 9.5% of its agricultural goods to Japan, with beef on top of the list. With JAEPA entering into force, it will remove tariffs off 97% of Australian exports. Thus a potential export increase for the following products:
Major agricultural exports of Australia to Japan for 2016
Increased export of Avocado to Japan
Interestingly, news of potential increase of avocado exports to Japan has also been reported. This is after John Tyas, Avocados Australia chief executive, stated that Japan has agreed to undertake an audit of WA avocado export packers last February.
Major exports of Australia to Japan for 2016
Although considered the smallest and oldest of the Asian FTA markets, especially for Australian farmers, Australia exports to Australia has increased to 12% with beef, wool and wheat showing as the big winners last 2016.
Major agricultural exports of Australia to Korea for 2016
Are you interested in exporting to Korea? Here are some of the duties and taxes you need to consider:
This may vary between 0% to 40% depending on the product. But since the implementation of KAFTA, many of these tariffs has already been waived.
For goods sold in South Korea, you typically pay 10% on the sum of the import value. This is calculated based on Cost, Insurance and Freight (CIF).
Special taxes can range between 5% and 72% of the sum of the CIF value and duty or charged per kilogram for liquor tax and between 10% and 30% for education tax.
Do you need help understanding these terms? We are happy to help. Contact us, today.
Major exports of Australia to Korea for 2016
Australia remains to be the leading supplier of US beef imports, with Canada and New Zealand coming next. Aside from this, below is a list of the top export goods shipped into the USA for 2016.
Major exports of Australia to the US for 2016
O’Brien Customs and Forwarding ships goods into the USA. >Contact us if you would like help getting your goods shipped today.
Major Australian export to India for the year 2016 includes mineral fuels, vegetables, live trees and plants, ores, slag and ash, cotton, gems and precious metals, cereal and milk preparations, wool, aluminium, and lead.
Major exports of Australia to India for 2016
However with the news of import duty on wheat reduced to zero from the previous 10%, Australian wheat exporters expect a further increased demand on this product.
A promising year for Australian exporters
With these news and numbers, Australian exporters are optimistic of the year 2017. The bilateral FTAs that Australia has entered into is quickly yielding positive results for exporters. The only thing remaining is for business owners to ensure their products remain globally competitive.
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