by Australian Trade and Investment Minister Andrew Robb and Chinese Commerce Minister Gao Hucheng thus laying the groundwork for preparation of the legal texts in both languages for signature in 2015.
The landmark China-Australia Free Trade Agreement (ChAFTA) will unlock substantial new benefits for Australians for years to come, the Australian Prime Minister Tony Abbott said. Negotiations for a free trade agreement with China commenced under the Howard Government in 2005 and languished between 2007 and 2013.
China is Australia’s largest two-way trading partner in goods and services (valued at more than $150 billion in 2013), its largest goods export destination ($95 billion in 2013), and its largest source of goods imports ($47 billion in 2013). China is Australia’s largest services export market ($7 billion in 2013). As explained by Abbott, the free trade agreement will ensure Australian businesses an unprecedented access to the world’s second largest economy.
“It greatly enhances our competitive position in key areas such as agriculture, resources and energy, manufacturing exports, services and investment. Building on trade deals already concluded with Korea and Japan, ChAFTA forms part of a powerful trifecta of agreements with Australia’s three largest export markets that account for more than 61 per cent of our exports of goods,” he added. More than 85 per cent of Australian goods exports will be tariff free upon entry into force, rising to 93 per cent in four years. Some of these goods are currently subject to tariffs of up to 40 per cent. On full implementation of ChAFTA, 95 per cent of Australian goods exports to China will be tariff free.
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