Home Forex Trade China Increases its Quota for Importing Wool from Australia

China Increases its Quota for Importing Wool from Australia

China Increases its Quota for Importing Wool from Australia

As per the recent reports, the Australian Department of Foreign Affairs and Trade has released a statement related to its trades with China. The announcement was made by the Foreign Affairs and Trade Department of Australia on January 9, 2021.

The department has stated that China has recently increased its quota against the “Wool” it is currently importing from Australia. The news comes as a positive sign for the investors, stakeholders, and markets that have been badly affected by the recent clash between the two countries following imports/exports.

This goes onto show that both countries recognize the importance of working together in these hard times. No matter the frictions and strains that have been caused by the external forces on both country’s relations, yet they are trying to get past them.

The Australian Department of Foreign Affairs and Trade also released a statement surrounding the current position of the wool business in China. The department has revealed that Australian Wool producing companies have been gaining a lot of recognition and adoption in the Chinese markets.

Through the increased trades taking place between both countries around wool, the Australian companies are now gaining access to even China’s local markets. The department attributed all of the progress and growth between both countries’ trades to the China Australia Free Trade Agreement.

The agreement between both companies was signed back in 2015. According to the agreement, the Australian wool will be granted duty-free treatment up to the quota level for the given year. However, the Australian department has announced that China has just increased the quota for the wool it imports from Australia.

As per the latest reports, Chinese has increased its wool import quota from 36,465 tonnes to 38,288 tonnes for the year 2021.

The recent deal made between the two countries in regards to import/export proves to be a positive move from China. It was just last year when China ceased all of its imports from Australia. This left Australia with billions of dollars worth of exports awaiting the go from China on the ports.

It was reported that the Chinese officials even stopped their communications with the Australian ministers. It was reported by the Australian ministers that Chinese officials had even stopped answering calls made by the Australian ministers. Therefore, the Australian government was unable to acquire any clarity from the Chinese officials on the matter.

Through the year 2020, the tensions were on the rise between the countries. However, with the recent development between the two countries, things may start getting back on track.

The Australian department revealed that the majority of the Australian fine-wool goes to China and Italian garment makers. Therefore, China has a huge role that it plays in driving the prices of wool globally.