Chinese Australian Trade Agreement

Once the agreement is fully implemented, 95% of Australia`s exports to China will be tariff-free. These include many agricultural products, including beef and dairy products. In addition, market access for the Australian services sector will be liberalised and investment by Chinese companies of less than AUD 1,078 million will not be subject to FIRB approval. In addition, an investor-state dispute settlement mechanism will be put in place as part of the contract. [2] But a free trade agreement with China will also strengthen Australia`s export competitiveness and promote export diversification. As expected, ChAFTA benefited from better access, particularly to emerging markets in China`s agriculture and services. This should help Australia rebalance growth towards non-resources – a major economic cushion after the end of the mining boom. Dr Jeffrey Wilson, research director at the American Centre in Perth, said the 2015 free trade agreement, which was colored by the Abbott government, “is not worth the paper it is written on today,” given Beijing`s actions. In accordance with Australia`s other bilateral trade agreements, the remaining Australian tariffs on Chinese imports will be phased out. These include removing 5% tariffs on Chinese exports, electronics and white goods, consumers and businesses benefiting from lower prices and greater availability of Chinese products. At ChAFTA, China offered Australia its best service obligations to date in a free trade agreement (with agreements with Hong Kong and Macao with China).

The agreement also provides for a Most Favoured Nation (MFN) clause that will protect Australia`s competitive position in the future if China treats other trading partners in education, tourism and travel-related services, construction, engineering, securities, environmental services, forestry, computer and related services in the future. , as well as some scientific and advisory services. It said it understood that it could be years before it was completed and heard concerns from some exporters that such a move could “make matters worse in the broader trade dispute.” “But how much worse can it be?” ACTU Secretary Sally McManus questioned Chafta`s ability to respond to its initial hype and called for elements of the agreement to be renegotiated. ChAFTA will strengthen export momentum and give Australia`s exports an advantage over major competitors from the United States, Canada and the EU. In addition, Australia is likened to competitors from countries such as New Zealand and Chile, which have already negotiated trade agreements with China. Australia and China signed the China Australia Free Trade Agreement (ChAFTA) on June 17, 2015, which came into force on December 20, 2015. Trade negotiations have secured many future benefits to Australia with Australia`s largest trading partner, China. The largest beneficiaries are those working in agriculture, manufacturing, services, investment, resources and energy. China also accepted a special clause recognizing Australia as the “most favoured nation” (MFN). This allows Australian companies to access the same agreements that China has in the area of free trade agreements with other nations (such as the United States) that could provide better access to the Chinese market. ChAFTA will enhance trade and investment between countries by reducing barriers to labour mobility and improving temporary access to temporary access within the existing immigration and employment safeguards of each country. The trade deal between Xi Jinping and Donald Trump is “the other disruptive factor” in the current environment, she said, because it forced China to buy a certain amount of goods

Fotos: Mitch Stöhring
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