Chinese government has decided to exempt Australia from imposition of new tariffs on coal import. However, the timing of a deal has yet to be finalized. Both the country is planning for free trade agreement (FTA) before the end of this year.
On the other hand, in this month, Beijing stunned Australia by levying a 3% tariff on coal used in steel mills and 6% on coal used in power stations, hitting USD 7.9 billion worth of exports from Australian miners, who are already reeling from a slump in prices.
Treasurer Joe Hockey said after a meeting in China, “Once we have an FTA, it will be abolished and quicker we it, more rapidly the tariffs will go.”
The tariffs will hit coal exports from Australia to its biggest rival, Indonesia, which is exempt under China’s free trade pact with the Association of Southeast Asian Nations.
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