China FTA will save jobs

TODAY we have witnessed the signing of a Free Trade Agreement (FTA) with China which will reap tremendous economic rewards for our region.After months of intense negotiation, tariffs on coal, beef and horticulture products will be removed completely, and this is a great step forward for the country as a whole.However I do understand that it is disappointing to see there is nothing for sugar at this stage.The big wins are for beef and fruit and vegetables, and the latter particularly is great news for the Bowen region.For both of these sectors substantial tariffs will effectively be reduced to zero.And more importantly coal tariffs are also going to zero. This will come into effect in three years’ time, which will give us a market advantage in the coal industry. Any easing of pressure on the coal industry secures jobs in our region.There are a couple of other bonuses.Australian resource service companies have also scored a win with guaranteed access for those wanting to operate in China in a range of different resource-related activities.And there are benefits on the holiday front with the issue of 5000 working holiday visas which will benefit farmers requiring seasonal labour and boost tourism stocks.For fruit and vegetable growers in Bowen and the Burdekin, this will provide an extra seasonal labour source, and the tourism operators in the Whitsundays will then share in the benefits during the off season as these increased numbers of people seek to holiday in the region.I would ask sugar cane growers who will be disappointed to keep in mind that this FTA paves the way for future negotiation.This is a foot in the door because in three years’ time there will be a renegotiation on five issues; sugar is one of these, along with state-owned enterprise, rice, cotton and grains.The lack of action at this point on sugar is disappointing but not surprising given that sugar, like rice, is a staple of the agricultural sector in China. Growers are not losing anything here, as their market access remains the same, and we need to look at it as another important step towards securing a deal on sugar.Today’s achievements highlight the importance of Trans Pacific Partnership (TPP) negotiations.The TPP is a multilateral trade negotiation with 12 countries in the region trying to get a more seamless level of trade amongst one another.These negotiations involve America and Japan, and those two markets really are critical for the sugar industry. I have every confidence in Trade Minister Andrew Robb delivering a sound outcome for the sugar industry through those negotiations.