The Chinese Ministry of Commerce has announced it will impose tariff rate quota (TRQ) limits for wool, which will have major implications for Australian woolgrowers, all processors in China and downstream users across the globe.
Australian Wool Innovation (AWI) Deputy Chairman, Brian van Rooyen said manufacturers and retailers throughout Europe, the United States and Japan rely heavily on China.
“The Australian wool industry and the Chinese wool processing industry urgently need to protect a trading relationship that underpins the global wool textile market,” said Mr van Rooyen.
“China and Australia have had a very successful bilateral trade relationship in recent years, particularly in terms of wool. China now accounts for 65 per cent of Australia's wool exports or in dollar terms nearly 1,271 billion AUD.
“Australian wool exports to China are second only to iron ore in value terms.
“AWI has been working behind the scenes to protect this trading relationship for many years now. We have established the Australian Wool Industry Free Trade Committee, and have been monitoring the TRQ situation in the context of a Free Trade Agreement with China, since 2004.”
Brian van Rooyen met with Minister Truss and Minister McGauran, and with officials of the Department of Foreign Affairs and Trade (DFAT) and the Department of Agriculture, Fisheries and Forestry (DAFF) in February 2007 to raise concerns that the industry believed thatthe quota would be filled this year, and that this would have an impact on Australian woolgrowers. Further meetings with DFAT throughout this year continued to stress this risk to the wool trade with China.
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