Australia and China Sign Free Trade Agreement Monday Nov 17,2014

 

Prime Minister Abbott and President Xi announced the conclusion of negotiations for the China-Australia Free Trade Agreement (ChAFTA) on 17 November 2014. Trade and Investment Minister Robb and Commerce Minister Gao signed a Declaration of Intent to work towards signature of the Agreement. ChAFTA lays an historic foundation for the next phase of Australia's economic relationship with China.

The landmark China-Australia Free Trade Agreement (ChAFTA) will unlock substantial new benefits for Australians for years to come.
ChAFTA will add billions to the economy, create jobs and drive higher living standards for Australians.

Ministers from China and Australia signed a Declaration of Intent on Monday, however the agreement will be signed in 2015 after the draft is translated and legally reviewed, a statement said.
Australian Prime Minister Tony Abbott described the deal as the first China had concluded "with a substantial economy, with a major economy; and it's the most comprehensive agreement that China has concluded with anyone".
The big winners are seen to be Australia's dairy and beef industries which will see tariffs removed

China-Australia free trade deal: key points

• Gives Australian exporters wider access to the lucrative Chinese market and private Chinese investors more freedom to put their money in Australia.
• About 85% of Australian exports into China will not incur tariffs, including dairy, beef, leather, mineral commodities and horticulture. Set to increase to 95% on full implementation of the deal.
• Chinese exports to Australia such as clothes, shoes, vehicles and electronics will be tariff-free.
• Threshold for Chinese investment in Australia without need for a government review raised to A$1.078bn from A$248m.
• Service sectors in both countries will benefit with freer access to industries such as healthcare, tourism, construction, banking and insurance.

This is the third FTA signed by Australia this year, following similar agreements with South Korea and Japan, as Australia looks to increase its exports of food and agricultural products to feed Asia's growing middle class.