December 9, 2005 -- A new report from Australia has found that Australian wool producers would reap a $780 million windfall if barriers to trade with China are ripped down.
The Australian Wool Innovation-commissioned report into the benefits of the proposed Australia-China free trade agreement (FTA) would boost wool sales to China by more than 20 percent over the next decade.
It also found China's clothing and textile industries would be $A516 million better off as exports to other nations soared.
Australia and China, this year, formally began FTA negotiations, although a final deal is not expected for several years.
An analysis commissioned by the two governments estimated an FTA would boost the Australian economy by up to $23 billion and China's economy by up to $83 billion.
The new report found Australian wool growers would benefit mostly from an end to the tariff-rate quota system on greasy and lightly processed wool enforced by China. Wool sold above the quota attracts a tariff of 38 percent.