The benefits for Australians who export goods to China are considerable, ranging from the elimination or reduction of tariffs, larger quotas for certain restricted items, and simplified customs procedures. Overall, 98% of Australian goods exported to China are duty-free or approved at preferential prices. Essentially, the negotiated terms have given Australia a strong competitive advantage in the Chinese market over some of our major competitors such as the US, Canada, the EU and New Zealand, particularly for our agri-food sector. Key Findings: It said it understood that it could take years to complete, and it heard concerns from some exporters that such a measure “could make matters worse in the wider trade dispute.” “But on the other hand, how much worse can it be then?” The full text of the agreement, as well as useful information and fact sheets on the free trade agreement, are available on the website of the Ministry of Foreign Affairs and Trade. For specific questions about the agreement, email ChinaFTA@dfat.gov.au or call DFAT on 02 6261 1111. Importers can contact the Ministry of the Interior. The trade expert noted that the WTO`s Appellate Body was already late and had been hampered by Trump`s blockade of appointments. Labour`s trade spokeswoman Madeleine King also strongly backed the Morrison administration`s plan to take China to the World Trade Organization over barley tariffs – a move trade experts have warned could take up to three years to resolve. However, King argued that the coalition had an “attitude of firmness and forgetfulness towards free trade agreements” where agreements were not accompanied by adequate monitoring and relationship building. There will be a work and holiday agreement in which Australia will issue up to 5,000 visas to Chinese nationals for work and leisure travellers.

[7] The free trade agreement was signed between the two countries in Canberra, Australia, on June 17, 2015. [4] The agreement will follow the usual treaty process, after which it will enter into force when China completes its domestic legal and legislative procedures, and in Australia review by the Australian Parliament`s Standing Joint Committee on Treaties and the Senate Committee on Foreign Affairs, Defence and Trade References. [4] The China-Australia Free Trade Agreement (DCFTA) is a bilateral free trade agreement (FTA) between the governments of Australia and China. Since the beginning of the negotiations, 21 rounds of negotiations have been concluded. [1] The agreement was finalised on 17 November 2014 and details published two days later[2], almost 10 years after the first round of negotiations, which began on 23 May 2005[3] following a joint feasibility study. The free trade agreement was signed between the two countries on June 17, 2015. [4] Following the usual conclusion of the agreement, the agreement entered into force on 20 December 2015, following the completion of the Chinese government`s domestic legal and legislative procedures and the Australian Parliament`s Standing Joint Committee on Treaties and the Senate Committee on Foreign Affairs, Defence and Trade References had completed a review. [4] [5] The agreement – known as Chafta – removed tariffs on Australian barley and sorghum when it entered into force in December 2015, while lowering tariffs on Australian seafood, sheepmeat and horticulture. Dairy products and beef would have abolished tariffs in the 2020s. Australia was the first country to launch a bilateral free trade process with China, with talks starting in May 2005 following a joint feasibility study and Australia`s decision to grant China “market economy status” under World Trade Organization rules. At the time, it was estimated that a pure free trade and goods agreement would contribute $18 billion to bilateral GDP over a ten-year period.

But the talks ended in a stalemate from mid-2007, and a formal agreement on chaFTA did not take place until after twenty-one rounds of negotiations. Finally, on November 17, 2014, Australia and China signed a Memorandum of Understanding to conclude the China-Australia Free Trade Agreement (CHAFTA), following a number of other countries and regions. The Abbott government trumpeted chaftA as a “historic” development that took Australia-China relations to a “different level,” and the media hailed it as “the deal of a lifetime for the Australian economy.” Robb described chaFTA as the most advanced bilateral free trade agreement with China “by far” and the “best of all time” in the services sector. (It is hoped that CHAFTA will help diversify trade between Australia and China away from resources and energy.) China`s benefits to Australia include the elimination of tariffs on ninety-five per cent of exports – including dairy, beef, lamb, seafood, wine and raw materials – and unique privileged market access for education service providers, finance, healthcare, law and tourism. In return, Australia pledged to lift tariffs on all Chinese imports, allow Chinese companies to import skilled labour that is not available in Australia, and raise the screening threshold for Chinese private investment from A$248 million to A$1.08 billion. In March 2015, it was reported that China had granted Australia “most-favoured-nation” status in CHAFTA, meaning that Australia automatically benefits from any extension of trade benefits that China grants to others. Once fully implemented, 95% of Australian exports to China will be duty-free. This includes many agricultural products, including beef and dairy products. In addition, market access for the Australian services sector will be liberalized and investment by Chinese private companies of less than A$1,078 million will not be subject to FIRB approval. In addition, there will be an investor-state dispute settlement mechanism under the treaty. [2] Australia cannot roll back its free trade agreement with China as it seeks to repair “broken” relations, the shadow trade minister said, accusing the coalition government of not establishing deep ties on the ground.

Shadow Trade Minister Madeleine King accuses the coalition of failing to establish deep ties on the ground Taiwan and Hong Kong [thematic link page: Australia and Australians in Greater China] have recently expressed interest in signing free trade agreements with Australia. The Australian government has not acceded to invitations from both regions to open negotiations. It is claimed that the ministry`s resources will be fully utilized in other trade deals, but commentators suspect that political sensitivities mean that Canberra will not begin such negotiations until CHAFTA is completely completed. Dr. Jeffrey Wilson, director of research at the Perth USAsia Center, said the free trade agreement signed by the Abbott government in 2015 was “not worth the paper it`s written on today” given the steps Beijing is taking. King said Chafta was important because of tariff cuts and market access in a number of sectors, although a Labour government has not signed some provisions of the agreement. CUTA Secretary Sally McManus questioned whether Chafta had lived up to its initial hype and called for the renegotiation of elements of the deal. However, as of July 2015, chaFTA was not yet fully completed. China is still resisting Australian demands for better access to markets for wool, cotton, wheat, sugar, rice and oilseeds. Australia has refused to change the threshold for automatic screening of investments by Chinese state-owned enterprises in Australia. The two sides agreed to review CHAFTA in three years to postpone decision-making on these politically sensitive issues. Meanwhile, the final text of the current agreement was approved by both countries in June 2015 and now needs to be evaluated by the Australian Parliament`s Joint Standing Committee on Treaties and the Standing Committee of China`s National People`s Congress before it can be signed and implemented.

Some analysts believe that China has worked with Australia because it believes that economic incentives can gradually lead to greater Australian accommodation for China`s regional leadership. It remains to be seen whether this accommodation will take place. Australia and China signed the China-Australia Free Trade Agreement (ChAFTA) on June 17, 2015, which will enter into force on December 20, 2015. Trade negotiations have yielded many future benefits for Australia`s business with Australia`s largest trading partner – China. Those who work in agriculture, manufacturing, services, investment, resources and energy benefit in particular. China has also agreed to a special clause recognizing Australia as a “most-favoured nation” (MFN). This gives Australian companies access to the same agreements that China enters into in free trade agreements with other countries (such as the UNITED States), which can provide better access to the Chinese market. Trade Minister Simon Birmingham said the government would continue to provide “all possible support we can provide at the administrative, diplomatic and political levels to ensure that our exporters retain the kind of market access they should have to China.” Tensions have led to a number of Australian export sectors being targeted during the year, including new high tariffs on wine late last week and a dispute over a seditious tweet from a Chinese Foreign Ministry official on Monday. .