Australian agriculture boom results from Free Trade Agreement with China

An Australian economist explains that the growth in the value of agricultural exports is linked to China-Australia Free Trade Agreement (ChAFTA), the free trade agreement with China in 2015.

 

 

 

A study by ABARES revealed that horticultural exports were valued at AUD 3.2 billion. The sector for the first time can compete with other leading sectors of exports: meat (AUD 3.6 billion) and dairy products (AUD 3.5 billion).

 

 

 

Phin Ziebell, an agribusiness economist at NAB, said the growth in the value of horticultural exports was closely related ChAFTA. "The value of Australian exports of navel orange has doubled in the first 3 years after ratification, and the value of mandarin exports has tripled."

 

 

 

China's share of Australian fruit exports increased from just 1% in 2009/10 to 27% in 2017/18, which represents a remarkable increase. The value of Australian fruit exports (AUD 1.2 billion) is 112% higher than its value 10 years ago.