On June 17, Chinese Minister of Commerce Gao Hucheng and Australian Minister of Trade and Investment Andrew Robb officially signed the "Free Trade Agreement between the Government of the People's Republic of China and the Australian Government" in Canberra, Australia. This news quickly attracted domestic attention. What impact will the new “zero tariff†partners have on the Chinese auto industry? Scented Candles,Candle Fragrance Oils,Home Fragrance,Luminara Candles Ningbo Glory King Imp&Exp Co., Ltd. , https://www.nbglory.com
The "Daily Economic News" reporter learned that since the entry into force of the agreement, both parties with a product accounting for 85.4% of the export trade will immediately achieve zero tariff. After the tax cut transition period, Australia's final zero-tariff tax account ratio and trade volume ratio will reach 100%; China's zero-tariff tax account ratio and trade share will reach 96.8% and 97% respectively.
According to some media reports, this means that after China and Australia reach a free trade agreement, the original 5% tariff imposed on China's entire vehicle will be cancelled, and the price competitiveness of Chinese cars from the local market will also increase.
"Daily Economic News" reporter learned from the website of the Ministry of Commerce that the bilateral trade volume between China and Australia reached 136.95 billion U.S. dollars in 2014. Last year Australia has become China’s 8th largest trading partner and the 7th largest import source and the 9th largest exporter in China. And China continues to maintain Australia's position as the largest import source and the largest exporter since 2010.
Among them, among the products imported from Australia in China, industrial products accounted for 97%. However, the current development of Chinese auto brands in the Australian market is still limited. This is mainly because although Australia's new car demand is mainly dependent on imports, the bilateral trade volume between China and Australia is not large.
As a developed economy in Australia, the auto market is becoming more saturated. According to the Australian Federal Chamber of Commerce of the Automobile Industry, the largest sales company in Australia, Toyota Motor Corporation, sold 204,000 new cars in 2014. The second-ranked local car brand, Horton, sold only 106,000 vehicles last year.
In addition, Australia imposes stricter ADR certification standards on the licensed vehicles. According to media reports, this standard is more stringent than the relevant standards of the European Union.
The analysis believes that the China-Australia FTA will contribute to the growth of bilateral auto parts trade. It is understood that the Australian car has a population of 600, which may be more demanding for the auto repair market and parts. Therefore, the analysis believes that this market will become a new business opportunity faced by Chinese component manufacturers.
According to the "Daily Economic News" reporter, China has signed 14 free trade agreements involving 22 countries and regions. These include China and ASEAN, New Zealand, Singapore, Pakistan, Chile, Peru, Costa Rica, Iceland, Switzerland, South Korea and Australia.
Previously, "Daily Economic News" learned from the China Council for the Promotion of International Trade that among the free trade zone countries, Vietnam, Myanmar, Chile, and Peru ranked among the top 10 in China's total vehicle export rankings, including China's exports to Vietnam this year. It reached 8,800 vehicles, an increase of 289% year-on-year. The free trade zone agreement has obvious effects on the export of automobiles.
·Chinese cars are about to enter zero tariffs in Australia