Chinese coal tariffs to go under free-trade agreement

Australia has secured a deal with China for zero tariffs on coal exports under a free trade deal Canberra hopes to conclude next month, it's been reported.

Under the deal, recently imposed Chinese tariffs on Australian coal are expected to be abolished, News Corp Australia reported on Wednesday.

Beijing this month announced the surprise levy on coal imports despite what is believed to have been a deal already secured by Trade Minister Andrew Robb for no tariffs.

The Chinese move would impose a three per cent tariff on metallurgical coal and a six per cent tariff on thermal coal.

Speaking in Beijing on Tuesday, Treasurer Joe Hockey said the Australian government was caught unawares by China's plans to raise the tariffs, despite being close to finalising an FTA.

"It was a surprise ... no one had a heads up," Mr Hockey told News Corp.

"We want to see our way through it and the answer that we agreed upon was the FTA," he said.

"Once we have an FTA, it will be abolished. The quicker we get an FTA, the quicker the tariffs will go."