Woolmark reaps first benefits of new China-Australia FTA
03/12/2014
Rob Langtry, chief strategy officer at Woolmark, said: "China has long been the Australian wool industry's dominant manufacturing partner, with over 70% of our greasy wool being converted into top and yarn in China for the past few decades.
“With the increase in Chinese living standards, the Chinese consumer now has the income, the climate and the aspiration to consume half that wool as end products. With the governments of China and Australia having now finalised a Free Trade Agreement we expect that trend to accelerate."
He added that the deal with Eve will "accelerate the understanding, acceptance and sale of high quality fashion made from Australian Merino wool" through Eve's network of 535 boutiques across China.
The Eve Group owns a number of domestic fashion brands and is the agent for Versace, Kenzo and Fendi.
China also takes a reported 90% of Australia’s sheepskins and 80% of cattle hides and the new deal means 5%-14% tariffs on hides and skins will be eliminated over four to eight years.
Share this story:
