Australian citrus exporters are now benefitting from immediate tariff cuts following the official start of the China Australia Free Trade Agreement (ChAFTA) on Sunday.

A critical ‘exchange of notes’ between Australia and China was the final procedure to enable ChAFTA to enter into force, resulting in an tariff reduction and a second on Jan. 1, 2016.

Citrus Australia CEO Judith Damiani warmly welcomed the introduction of the FTA, and the benefits it would bring the Australian citrus industry.

"The China-Australia FTA will eventually remove all tariffs from Australian citrus and assist our exports, which have reached record levels this year," Damiani said.

The agreement will see all tariffs on Australian citrus exported to China eliminated over an eight-year period. Orange tariffs are currently 11% and mandarin tariffs are at 12%.

"China has become the highest valued export market for Australian citrus this year reaching [AUD]$52.6 million by the end of October – up 71% from 2014," Damiani said.

"Their demand has helped raise Australian export volumes and value to record levels this year to $263 million – up 38% from 2014."

Damiani encouraged Australian citrus exporters to qualify for the preferential tariffs by completing a certificate or declaration of origin.

A surprise but welcome announcement over the weekend by the World Trade Organization's member countries to eliminate US$15 billion worth of agricultural export subsidies will also create a more level playing field for Australian citrus exporters.

"It’s all the more positive to see historical agricultural subsidies and tariffs being eliminated while demand for premium quality safe food increases around the world," Damiani said.

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