The agreement will give Australian dairy farmers tariff-free access within four years to China's lucrative infant formula market, minus any of the "safeguard" caps that currently restrict competitors from New Zealand, the Sydney Morning Herald reported, citing sources.
"Australia has been marginalized from being a major exporter to China in the last few years, one of the reasons being that milk production (there) has been going down over the last decade," said Sandy Chen, dairy analyst at Rabobank in China.
Wine makers, currently selling more than A$200 million worth of goods to China each year despite tariffs of between 14 and 30 percent, will also see tariffs eliminated over four years, it reported.
Tariffs on horticultural products, seafood and other goods accounting for 93 per cent of Australian exports by value will also be reduced to zero by 2019, according to the newspaper. Sydney Morning Herald reported, citing sources.