FTA with Australia a ‘boon for China agribusiness’

dairy-chinWhile Australian beef made up just 10 per cent of China’s total consumption, demand for the product was growing. (Image source: US Department of Agriculture/Flickr)Dairy, beef, lamb, horticulture, grains and seafood are some of the sectors set to benefit following the signing of the China-Australia Free Trade Agreement (FTA) recently

Khan Horne, general manager agribusiness of National Agriculture Bank (NAB), said that the signing of the FTA is exciting for many farmers across the Asian country.

“China is one of the largest markets in the world, and for NAB customers we want to see Chinese markets unlocked further for Australian agribusinesses. While the FTA is a great step forward, the hard work now begins for farmers. Patience and a disciplined long-term strategy is needed to succeed in China. China is changing the way it is doing business, and Australian agribusinesses need to factor this into their strategies.

“As Australian famers know only too well, Agribusiness is capital intensive and Australia has always relied on foreign capital. This FTA has the potential to unlock Chinese capital to help Australian farmers expand their businesses and create for jobs for Australians.

Alongside the FTA agreement, NAB and the Export-Import Bank of China signed an MoU, supporting greater collaboration between the two parties.

The memorandum is expected to enhance coordination between the two banks in a number of areas, including syndication, project finance, FX trading, derivative trading and export/import credit.

NAB was the first Australian bank to establish a presence in China in 1982, and this memorandum is the fifth cross border financial services collaboration that NAB has undertaken in China.

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