China and Australia Aim for Zero Tariff in 2019: What to Expect in Aluminum Product Trade
New System of Tariff in China-Australia Trade System
From January 1, 2019, all tariffs on Chinese goods entering Australia will be canceled, and China will basically abolish tariffs on Australian imports. In the past three years since the implementation of the China-Australia FTA, the two sides have been reducing taxes. This is the fifth round of concessions.
At the recent CIIE in Shanghai, Simon Birmingham, Australian Minister of Trade, Tourism and Investment said: "From January 1, 2019, all Chinese goods entering Australia will be exempt from customs duties. China will also be canceled a range of tariffs on Australian products, including wine, infant formula powder, and honey."
What Experts Are Thinking About the New Tariff System
"Now both countries have demonstrated their determination to open up, which will greatly enhance mutual trust, reduce the risk of tariff friction, and enhance mutual trade and investment willingness," Birmingham further said. Birmingham stressed that Australia has always attached importance to trade relations with China. Any external fluctuations will not affect Australia's independent trade policy. In terms of trade relations with China, Australia will continue to adhere to friendly trade policy.
Australia is the most developed economy in the world, and China is Australia's largest trading partner and largest export destination. Australia is China's sixth largest export destination. The economic integration between Australia and New Zealand is progressing well. Australia is the leader of the South Pacific region. Therefore, Australia has a certain radiation function for the South Pacific market. At the same time, Australia is also an ally of the United States, and the United States is Australia's largest investor.
New Hopes and Opportunities in China-Australia Trade Relation
The news that Australia imposes zero tariffs on all imported goods in China will bring good opportunities to many industries in China. On September 24, 2018, the United States officially increased the tariff on Chinese hardware and building material products by 10%. From January 1, 2019, the tariff will be raised to 25%. In addition to the United States, some developing countries such as Chile, Thailand, India, and Nigeria have joined the ranks of anti-dumping against China. Now this news is undoubtedly a gift to the enterprises that export hardware and building materials.
The tariff-free policy will undoubtedly benefit China's aluminum products, and China's aluminum products may open up a larger market in Australia. FONNOV ALUMINIUM has always attached great importance to the Australian market. In recent years, large Chinese real estate companies such as Wanda have also invested in real estate projects in Australia. The influx of Chinese investment has also driven the development of local real estate. NSW, Victoria, Queensland and Western Australia are the most developed regions in Australia. Sydney and Melbourne are Australia's financial and manufacturing centers, respectively.
They are also the two largest consumer markets and the two main distribution centers for Chinese goods entering the Australian market. Due to the surge in residential development, new facilities for home improvement building materials have reached record levels. With this zero tariff, China is predicted to have a greater opportunity to show their high-quality powder-coated profiles, wood grain profiles, waterborne paint profiles and PVDF profiles for the construction of doors, windows, and facades in the construction industry.