Myth busted – how China trade deal will really affect Australian agriculture

Agriculture has been touted as a big winner in the China Australia Free Trade Agreement but a closer look at the deal shows it is unlikely to have much influence on the national economy. The Commonwealth Bank of Australia’s head of industrials, food, beverage and agriculture, Peter McGregor, said there was plenty of reasons to get excited about the prospects for dairy, beef and wine industries. The tariffs for these products will be slashed from 20 to 25 per cent to zero in coming years. But Agriculture makes up about 8 per cent of Australia’s total exports to China, he said. Of that 8 per cent, about 20 per cent is dairy, beef and wine.