China-South Korea FTA and China Australia FTA are confirmed to be effective in December 20, 2015 and the first tax reduction, thesecond tax reduction in January 1, 2016. In the end, more than 90% of the products will enter the era of zero tariff after the transition period. This will help reduce China's exports of Chinese herbal medicines in the two countries, while also expected to reduce the price of imports of Korea ginseng.
Present situation of Chinese herbal medicine import and export trade
At present, China and South Korea, Australia, the frequent trade between Chinese herbal medicine, especially in South korea. Because China and South Korea are geographically close, health care and medication are very similar, so the two countries have a huge amount of Chinese herbal medicines. In our country a lot of quality in the export of medicinal herbs to South Korea, such as white atractylodes rhizome, Chinese angelica root, astragalus root, Platycodon root; South Korea to China export standards higher fine your medicines, main ginseng and other Chinese herbal medicines. China imports less herbs from Australia, but a large number of Australian exports to the tonic health care category. On the one hand, due to more Chinese in Australia, the demand is relatively strong, on the other hand is due to the country along the way development strategy, so that more Australians gradually accept Chinese medicine.
Tariff reduction is conducive to the import and export of Chinese herbal medicines
The entry into force of this agreement, is expected to reduce the export tariff costs of a variety of herbs to reduce prices. In the export side, in 2014, China's exports of Chinese herbal medicines, China's exports of 196700 tons, exports 1.295 billion(China health care chamber of commerce data). Australia, South Korea accounted for about 7%, which is nearly 80 million yuan.
And in terms of imports, the most affected is the South Korean imports from Korea ginseng prices. China ROK FTA negotiations started in May 2012, is the most extensive coverage of China's foreign trade, involving the country's largest trade area of the FTA. Some experts expect the size of the bilateral trade will break through 400 billion dollars in 5 years. With the development of China's health care market, the domestic demand for Korea ginseng strong, China's imports from South Korea the amount of up to more than RMB. But because of the tariff, domestic ginseng layering goods price in the 800-900 yuan, while imports goods price can sell to 1400-1500 yuan, the spread of nearly half. With the reduction of tariffs, imports of domestic prices in Korea is expected to reduce.
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