Marise Payne (NSW, Liberal Party, Minister for Human Services) Share this | Hansard source

I particularly thank Senator McGrath for that question because today Australia did sign a landmark free trade agreement with China, which is our largest trading partner, with total trade worth almost $160 billion in 2013-14, and a significant and growing source of investment. The China-Australia Free Trade Agreement, the ChAFTA, will lock in existing trade and provide the catalyst for future growth across a huge range of areas, including goods, services and investment. The agreement secures for Australia better market access to the world's second largest economy, improves our competitive position in a rapidly growing market, promotes increased two-way investment and reduces import costs. It is a win for households and businesses alike.

On day one of ChAFTA, more than 85 per cent of Australian goods exports will be tariff free. This will rise to 95 per cent on full implementation. Most importantly, Australia's agriculture sector will be able to capitalise on its well-deserved reputation as a clean, green producer of premium food and beverage products. Tariffs will be progressively abolished in Australia's $13 billion dairy industry. Australia's beef and sheep farmers will also gain from the phased abolition of tariffs, which range from 12 to 25 per cent, and all tariffs on Australian horticulture will be eliminated.

As Senator Brandis said on arriving in the chamber in relation to the historic signing today, there was a great sense of occasion at this particular event. That we have brought to fruition this free trade agreement with our largest trading partner is an extraordinary accomplishment for this government and a great credit to the trade and investment minister, Mr Robb. It will enhance our trade in goods and services, which already stands at $160 billion.