China is fast becoming an attractive destination for international agrifood exports. Imagine that you are an Australian mango (fruit) farmer looking to export your product to China. As an exporter:  

• What are the possible benefits a Free Trade Agreement (FTA) between Australia and China may provide? 
• What are the possible trade barriers you may face? 

 

Answer:

One of the benefits of the Free Trade Agreement (FTA) between Australia and China is that there is a significant reduction in tariffs on agricultural products, which makes it cheaper for farmers to sell their products internationally (Culas & Timsina, 2019). Additionally, it balances pricing for farmers exporting products to China, while at the same time providing a competitive advantage to Australian farmers over those from countries such as the United States and Canda. Furthermore, the FTA eliminates barriers to trade while encouraging cooperation between these countries.

Some of the possible trade barriers include tariffs imposed by china on imported goods, import quota restrictions, and technical barriers that prevent the exportation of products to Chinese markets (Bao & Qiu, 2010). Cultural differences may also constitute barriers to trade .

References

Bao, X., & Qiu, L. D. (2010). Do technical barriers to trade promote or restrict trade? Evidence from China. Asia-Pacific Journal of Accounting & Economics, 17(3), 253-278.

Culas, R. J., & Timsina, K. P. (2019). China-Australia free trade agreement: Implications for Australian agriproducts trade and farm economies (No. 2186-2019-1408).

Step-by-step explanation

To get the benefits of the Free Trade Agreement, it is important to first understand what it is and what it entails. The sources given provide detailed information on the FTA and the barriers to trade in the Chinese market.