China–Australia Free Trade Agreement

The China–Australia Free Trade Agreement (ChAFTA) is a bilateral Free Trade Agreement (FTA) between the governments of Australia and China. Since negotiations began, 21[1] negotiating rounds were completed. The deal was completed and the details of the deal released on 17 November 2014.,[2] nearly 10 years after its first round of negotiations that began on 23 May 2005[3] after a joint feasibility study. The free trade agreement was signed between the two countries on 17 June 2015.[4] The agreement will follow the usual treaty making process whereby it will come into force when China completes its domestic legal and legislative processes and when Australian Parliament’s Joint Standing Committee on Treaties and the Senate Foreign Affairs, Defence and Trade References Committee finish the review.[4] The agreement entered into force on 20 December 2015.[5]

Background

According to Australia's department of Foreign Affairs and Trade, in 2014, China was Australia's largest export market for both goods and services, accounting for nearly a third of total exports, and a growing source of foreign investment.[6]

Australia's Prime Minister Tony Abbott and Chinese President Xi Jinping announced the conclusion of negotiations for the China–Australia Free Trade Agreement (ChAFTA) on 17 November 2014. A Declaration of Intent to work towards signature of the Agreement was signed by Australia's Trade and Investment Minister Andrew Robb and China's Commerce Minister Gao Hucheng.[6]

Provisions

Upon full implementation of the agreement, 95 percent of Australian exports to China will be tariff free. These will include many agricultural products, including beef and dairy. In addition, there will be liberalization of market access for Australia's services sector, and investments by private companies from China under 1,078 million AUD will not be subject to FIRB approval. In addition there will be an Investor State Dispute Settlement mechanism under the treaty.[2]

There will be a Work and Holiday Agreement in which Australia will grant up to 5,000 visas to Chinese nationals for work and holiday makers.[7] The free trade agreement was signed in Canberra, Australia between the two countries on 17 June 2015.[4] The agreement will follow the usual treaty making process whereby it will come into force when China will complete its domestic legal and legislative processes and in Australia, review by the Australian Parliament’s Joint Standing Committee on Treaties, and the Senate Foreign Affairs, Defence and Trade References Committee.[4]

See also

References

  1. ↑ "Twenty-first round of negotiations".
  2. 1 2 http://trademinister.gov.au/releases/Pages/2014/ar_mr_141117.aspx
  3. ↑ Australia-China FTA Negotiations, Department of Foreign Affairs and Trade
  4. 1 2 3 4 "Australia signs landmark trade agreement with China, Media release, 17 Jun 2015, Australian Minister for Trade and Investment, The Hon Andrew Robb AO MP". trademinister.gov.au. Retrieved 2015-07-20.
  5. ↑ "China-Australia Free Trade Agreement (ChAFTA)". Australian Trade Commission. Retrieved December 8, 2015.
  6. 1 2 "China-Australia Free Trade Agreement". Department of Foreign Affairs and Trade. Retrieved 7 September 2015.
  7. ↑ http://dfat.gov.au/trade/agreements/chafta/fact-sheets/Pages/key-outcomes.aspx

External links

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