2011, Volume 19, Paper 4
ISSN: 1883-5675

The Australia-Chile Free Trade Agreement and prospects for trade in fresh fruit: the cherry industry

Andres Valdivieso
Peter McSweeney
Nanette Esparon

Abstract

Australia has reduced its international trade barriers by signing Free Trade Agreements (FTAs). These FTAs have brought benefits to some sectors of the economy, along with threats to some firms in local industries. The recent FTA between Australia and Chile has focused attention on the competitiveness of the Australian fruit industry, because of significant differences in costs of production in the two countries. In this paper the forces promoting and resisting the importation of fresh fruit, including cherries, into Australia from Chile are discussed. Both countries enjoy similar natural conditions to produce cherries and counter-seasonal competitive advantages to export to a range of countries. As well, the strong Australian domestic demand for fresh fruit could encourage Chilean exporters to access Australian markets. At the same time, phytosanitary requirements remain an obstacle to Chilean imports of cherries to Australia.

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