A customer shops for imported beef in a supermarket in Shanghai in June. Photo: IC

Beef imports from Australia were up substantially during the first seven months of 2019, reaching the yearly import quota under the free trade agreement with China four months ahead of schedule.

Bilateral free trade talks may be accelerated as China's domestic market continues to expand and the country is seeking more trade partners to combat unilateralism and protectionism amid the trade war with the US, experts said.

More Australian products are likely to be eligible for lower tariffs and higher quotas soon, experts said.

China's beef imports from Australia topped 172,411 tons as of August 15, exceeding the yearly quota of 170,000 tons under a bilateral agreement, China's General Administration of Customs said on Monday.

The tariff on beef from Australia was set at the most-favored-nation rate from August 17 to the end of this year, said the note.

The most-favored-nation tariff rate is higher than the rate under the free trade agreement between China and Australia, but the quota is expected to be lifted and Australian beef may enjoy a lower tariff in the future, Li Guoxiang, a research fellow at the Rural Development Institute of the Chinese Academy of Social Sciences, told the Global Times on Monday.

In 2018, the yearly quota was reached on December 27, generally in line with the original plan. Beef imports from Australia accounted for about 17 percent of China's total beef imports, which stood at 1.04 million tons last year.

China's beef consumption this year is being partly driven by outbreaks of African swine fever. Also, China's beef consumption continues to grow as domestic consumption is upgraded, said Jiao Shanwei, a veteran analyst in the agricultural field.

The quota on Australian imports, which was imposed to protect domestic producers, may be lifted as demand grows faster than production, Li said.

The China-Australia Free Trade Agreement (ChAFTA) took effect on December 20, 2015. Imports from Australia have been substantially boosted by five rounds of tariff cuts thus far.

Under ChAFTA, the tariff rate on beef from Australia was cut from 7-15 percent to 6-12 percent as of January 1, 2019, according to media reports.

Under ChAFTA, China only imposes an import quota on a handful of goods such as beef to protect domestic producers.

China and Australia have highly complementary trade structures. China has reiterated that it is willing to expand trade partnerships that respect free trade and multilateral trade rules, said Li.

Free trade talks between China and Australia are expected to move ahead more quickly, and more imports from Australia are likely to enjoy lower tariffs soon, Li said.


Newspaper headline: Australian beef imports grow rapidly