Australia's dairy industry calling for FTA with China

The Australian Dairy Council said a Free Trade Agreement (FTA) with China must be secured quickly, to avoid further damage to the sector in New Zealand's favour.

Australia has been negotiating with China for four years and its main dairy competitor New Zealand had secured a FTA with China late last year.

Australia's problem now is China's exclusion of agricultural products from the FTA.

Trade Minister Simon Creane was reported to have said that Australia would not agree to an outcome less favourable for agricultural products than the one finalised with New Zealand.

The council's chairman, Allan Burgess, said it is important that an agreement of a similar quality to that of New Zealand's is reached, as it is not possible to stay competitive in the current economic climate especially when New Zealand is not required to pay tariffs.