Dan Tehan (Wannon, Liberal Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. Will the Prime Minister update the House on how the Australia-China free trade agreement will boost our economy, create jobs and support Australian exporters, including in my wonderful electorate of Wannon?

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I thank the wonderful member for Wannon, who is representing a wonderful electorate. I can inform him and the House that one of the very first commitments that this government made was to finalise free trade agreements with Korea, Japan and China within a year—and that is precisely what we have done. We have concluded these free trade agreements with Korea, Japan and now China. People said it could not be done, but it has been done. It has been done by this government. It has been done thanks to the extraordinary work and commitment of the Minister for Trade and Investment. The whole nation owes this minister its gratitude. It has also been done because of some outstanding work by the officials of the Department of Foreign Affairs and Trade, led in this case by Jan Adams.

This government has delivered on much over the past year. We have abolished the carbon tax. We have abolished the mining tax. The boats have all but stopped. Roads are being built and the budget is being repaired. But few things that this government have done are as important to our long-term future as these free trade agreements, particularly the free trade agreement with China. This sets Australia up for the long term. It will be good for jobs. It will be good for growth. It will be good for consumers. It is good for our country. It is particularly good for the farmers of Wannon.

Most years we export some $100 billion worth of goods to China, and 95 per cent of our exports to China will be tariff free once this agreement is fully in effect. Dairy tariffs of up to 20 per cent will be gone. Beef tariffs of up to 25 per cent will be gone. Lamb tariffs of up to 23 per cent will be gone. Wine tariffs of up to 20 per cent will be gone. Horticulture tariffs of up to 30 per cent will be gone. Seafood tariffs of up to 15 per cent will be gone. And pharmaceutical tariffs of up to 10 per cent will be gone.

This is the first comprehensive free trade agreement that China has done with a major economy. The Howard government started it, and the Abbott government finished it. That is exactly what we have done. Just to give you some idea of what is possible under this agreement: New Zealand dairy exports to China more than quadrupled under their free trade agreement. They are the prospects that Australian farmers can now enjoy. Trade means jobs. Freer trade means more jobs. That is why free trade agreements are at the heart of our plan for a strong and prosperous economy.