FTA benefits Ningbo exporters
- Details
- Category: Governmental News
- Published: Tuesday, 23 June 2015 09:32
As one of the top ten trade partners for Ningbo, Australia has close economic and trade ties with Ningbo and the goods are highly complementary in the two markets. With the signing of the China-Australia free trade agreement, Ningbo exports to Australia will enjoy much lower prices and greater competitiveness in the market.
Statistics from Ningbo Commerce Commission show that in 2014, Ningbo's import and export volume to Australia reaches US$4.508 billion, up by 1.3% over the previous year, including US$1.927 billion for exports, up by 4.8%, and US$2.581 billion for imports, down by 1.1%. in the first five months of this year, its import and export volume to Australia stands at US$1.505 billion, including US$691 million for exports and US$814 million for imports. The imported goods are mainly some industrial products, like iron ore, coal and lignite, unforged copper and copper products, grain and scrap metal. While the exports mainly include clothing and accessories, plastic products, furniture and parts, textile yarns, fabric and products, lamps, and lighting equipment and similar products.
Australia is the biggest exporter of wool and beef in the world. The signing of the China-Australia FTA is good news for Ningbo Nobel Garment Co. Ltd. It is reported that the company imports over 400 tons of wool from Australia each year, being one of the largest wool importer (from Australia) in Zhejiang province. "The tariff for the pure wool import is 10%. The FTA will impose the country-specific quotas for wool products from Australia, and the tariff for the in-quota products is zero, which means a great reduction of the import cost." said a person in charge from the company.
Ningbo Jinshuai Import & Export Corporation invested US$8.68 million in the construction of the Display and Distribution Center for Chinese Brands in Australia. The center will integrate the exhibition, trade and management of household appliances and construction materials from China, with such functions as exhibition and display, warehousing, wholesales, and officing. The establishment of the overseas commodity center will promote the development of the sales networks for more products from Ningbo.
It is reported that with the China-Australia FTA, some products can enjoy preferable tariffs, including clothing and leather products, electronics and machinery, other finished products, steal and metal products, and chemicals, which will benefit the exporters in Ningbo by resulting in lower prices and better competitiveness.
