Posted by: Chloe Kopilovic | Date: 18 November 2014
On 17 November 2014, the Australian Government entered into a Declaration of Intent with the Chinese Government in relation to a “free trade agreement”. The Declaration of Intent marks the conclusion of the China-Australia Free Trade Agreement negotiations and lays the foundation for a watershed economic relationship between the two countries.
The Government has released a statement saying that the China-Australia Free Trade Agreement covers 14 commercial agreements. The agreements cover a variety of areas including:
At the commencement of the China-Australia Free Trade Agreement, 85% of Australian products will be exported to China tariff free. This is set to rise to 93% within four years.
The biggest immediate beneficiaries will be the mining sector and the agriculture and processed food sector.
In respect of the mining sector the Australian Government has secured the removal of tariffs on:
In respect of the agriculture and processed food sector, some of the removal of tariffs the Australian Government has secured include:
The signing of the agreements will take place once both countries have completed legal review and translation.
Once the agreements have been signed, they will be presented to the Australian Parliament, along with a National Interest Analysis for 20 joint sitting days.
Following this, the Joint Standing Committee on Treaties will conduct an inquiry into the agreements and report back to Parliament.
Once legislation has been drafted and China has undertaken its own domestic processes, Australia and China will exchange diplomatic notices. 30 days after this exchange, or on a date otherwise agreed, the China-Australia Free Trade Agreement will enter into force.
For more information on the China-Australia FTA see the website for the Department of Foreign Affairs and Trade.
Please contact me if you have any queries.