The free trade agreement (FTA) with China will allow Beijing to reinstate tariffs on some Australian beef and dairy products once imports hit a certain volume, a federal parliamentary committee has been told.

Under the FTA signed last year, China is to phase out tariffs on imported Australian beef over nine years.

But agribusiness lawyer Lea Fua told a Brisbane hearing that China has a safeguard clause which allows it to add customs duties to fresh and frozen beef carcasses and meat when Australian beef imports hit a volume trigger of 170,000 tonnes.

"In 2013-14, Australia exported 161,000 tonnes of beef to China worth $787 million," Mr Fua told the Joint Parliamentary Committee on Treaties.

"The concern here is that given the growth in Australian beef exports to China, which has been exponential in the last few years, the risk here is that the trigger will be reached fairly quickly and China is able to apply extra customs duty which appears to be against the spirit of chapter two [of the FTA]," he said.

Mr Fua said a similar situation applies to Chinese imports of Australian milk and cream solids.

"While there is a review process included in chapter two [of the FTA] to consider removal of the safeguard, this process is not clearly set out," said the lawyer from HopgoodGanim.

"The availability of this safeguard to China only is concerning and we recommend [that] a clear process for the removal of the safeguard should be articulated."

Mr Fua said Chinese tariffs on Australian beef imports currently range between 12 and 25 per cent.

Fair deal needed for Chinese investors in rural land, lawyer says

On the issue of Chinese investment in Australia, Mr Fua said the Federal Government's recently released blueprint for agricultural competitiveness underlines the clear need for foreign investment in Australian agriculture.

"Under Australian policy, foreigners must seek prior approval [from the Foreign Investment Review Board] for any proposed acquisition of an interest in rural land where the value is likely to exceed $15 million," he said.

"This applies to all state-owned investors except those from the US, New Zealand, Chile, Singapore and Thailand", which can invest $50 million to $1.094 billion before seeking prior approval, he said.

He said it is not clear under the China-Australia FTA whether the threshold for Chinese investment in rural land will be increased to be in line with that of the US and other favoured countries.

"We are concerned that the threshold for private Chinese investors should align with that for other investors given the significant trading relationship between our two countries," Mr Fua said.

He said the FTA also raises questions about whether Australian investors will receive reciprocal rights in terms of the acquisition and establishment of investments in China.

Trade Minister Andrew Robb warned any delay in the passage of the FTA through Parliament could cost Australian industries hundreds of millions of dollars.

The Treaties Committee, which is examining the positive and negative aspects of implementing the FTA, will hold its second public hearing in Sydney this Friday.

Hearings in Canberra, Melbourne, Perth and Tasmania will follow.

Source: ABC.net.au

• EU to ban products made with forced labour - a progressive tool against modern slavery
• VN needs drastic reforms to create firm ground for economic growth: experts
• Enterprises want clearer regulations on seafood production
• Foreign businesses increasingly seek export sources in Vietnam
• Sailing through storms: The fallout of Red Sea disruptions for global trade and inflation